Monday, January 17, 2011

Home Improvement Ideas: Recreational Room

Recreational Room
Doing home improvement on your recreational room is the perfect answer in a slow economy. You can improve your home and have many fun things to do as a family in your home instead of leaving it and spending more money.
Home improvement ideas include having a professional install carpeting, wood floors or laminate wood floors to your recreational room. To choose which type of flooring to put in your recreational room ask yourself these questions:
If I am to put carpeting in my recreational room, will it last? Will there be a lot of children using the recreational room? If there will be a lot of children using the recreational room you may want to opt for wood flooring or laminate flooring. You want everyone to have a relaxed and fun time in the recreational room, not stressed and nervous about spilling on the carpeting.

If I buy wood flooring will my dog's nails scratch the flooring? Will there be a hot tub in my recreational room that will get water on the floor? If you have a dog or multiple dogs you may want to opt for laminate wood flooring. These days laminate wood flooring is very strong and you can even purchase laminate wood flooring with grooves between the "wood" to make it look even more natural.

If you live alone or as a couple you may choose wood flooring or carpeting in your recreational room as most adults are more careful with regards to stains and scratching the floor. Remember the choice is yours with the flooring you choose. We are giving you thought out suggestions when you choose to improve your home.

Before you hire someone to install the flooring, make sure you add a fresh coat of paint to each room you will be improving. The professional that you hire can also help you choose which type of flooring is best for your home and living situation.

If you have a large rec room with a few rooms off of it, you may choose to make the largest room your main room. Many folks like to have this room as their media center. The media center will have a large screen TV, comfortable chairs and/or couch with cup holders. You may choose to add a bar to your recreational room. You can put in a little freezer to keep the ice cold as well as beverages. If you are going to stock your bar with liquor please remember to lock it up.
You may also add a game system such as the Wii, PlayStation 3, etc. to add to more fun.

A pool table and/or air hockey table, vintage games such as Pac Man and foosball are nice additions to entertain you and your family as well.

In one of the rooms off of the recreational room, you may have the floor installer add carpeting or another type of flooring. Use this room to put all of your workout machines in. This can be your quiet workout room. You may want to add the home improvement of having built in speakers in this room so you can listen to music to get you working out even harder. Another home improvement idea is to add mirrors to this room so you can watch yourself workout and your body improve.
The other room off of the recreational room can be the room you design for relaxation. You may put in wood flooring, safe tile with ridges on it so no one slips or laminate wood flooring. Beforehand, hire a professional painter to paint the room a comfortable cool color that makes you feel relaxed. Now add a hot tub to the room that fits you, your spouse and/or the size of your family. Add candles and make sure you have a built in speaker or two in this room so you can listen to soft music while you de-stress.

Other home improvement ideas include making sure the windows in your recreational room are keeping heat in and the cold air out and vice versa in the summertime. If not, it is time to replace your windows so you can save money on your heating and air conditioning bills. New windows will also improve the look of your home.

There are many home improvement ideas you can hire a professional to accomplish so you can create the recreational room you and your family desire.

Source:  http://www.articlesbase.com/remodeling-articles/home-improvement-ideas-recreational-room-3717436.html

Thursday, January 13, 2011

7 Ways to (Re)Discover the Beauty in Your Home

So I was jonesing to see Laure's new place and I kept hinting that I wanted to come over. Ugh, I'm so embarrassed, she said, it's so unfinished and I'm couch-less. When she finally invited me over, I wondered why she'd been so worried. It's a cute and inviting bungalow — couch or not — with bright light and the gorgeous mid-century furniture Laure inherited from her grandmother. 

Whether you've just moved into a place and are overrun with the little details of putting it together, been living in a place for a long time and all you see are the things that need repairing or spent the whole morning looking through House Tours, it's likely that at one time or another, you've been in Laure's shoes. When that happens, try these 7 tips to rediscover the beauty in your home:
  • Go away: After a long vacation, you're excited to be home. Your home looks new again. Sometimes, all it takes is a night or even a long day away.
  • See your home at a different time of the day: When I was working out of the house, I'd sometimes have to run home at lunch. Seeing my home in the middle of the work week, it felt different. Quiet. Calm. It was like entering a friend's home that I knew well.
  • Take a photograph of it: A photo of your home can show you things you never see when you just take it all in. Even better: have someone else photograph it! What do they choose to shoot?
  • Invite someone over who's never been to your house or hasn't been over in a long time: See your house through their eyes. What are the little things they notice that you take for granted?
  • Move the furniture around: Often, when you're pissed off at your house, it's because it doesn't feel like you any longer. Like a long healthy relationship, your house has to morph and change. Try a different arrangement. Switch the couch with the chairs. Put the dining table on an angle. Move that bench in the bedroom to the living room.
  • Hire a cleaning lady: I love coming home after the cleaning lady's been there. The house is perfect: the floors dark and shiny, the couch well plumped, the sink sparkling. This is seeing your house at its best.
  • Sit in a different spot: You've got your favorite spot on the sofa for watching TV, you always sleep on the same side of the bed. Mix it up a little. When I did this I rediscovered a Moroccan hanging light I'd picked up a few years ago.
  • Buy something new for your home: I don't mean a little bitty vase. Get something that makes a style statement. Hint: It doesn't have to be expensive. You can DIY it. Some ideas: new throw pillows, a small table, new lamps. Go bolder: recover the couch, change the rug.
  • Or take something away: Roll up the rugs. Clear off the coffee table. Box up the knick knacks. Right now, I'm living without a rug and the house feels wonderfully minimal.

Wednesday, January 12, 2011

Home Buying for the Long Haul Pays Off

Despite the slump, housing remains a good long-term investment—in the right markets

The era of get-rich-quick real estate is dead. The era of increasing long-term wealth in your home is back.

Historical data from the National Association of Realtors (and adjusted for inflation by Businessweek.com) show that in 18 of the 25 largest metro areas in the U.S., the value of homes purchased in 1990 had increased by 2010, often by double digits. And this in a year when real estate prices around the country have softened since their peak in 2006. These houses would have been worth even more a few years ago.

While that's cold comfort for the many Americans whose homes have lost more than $1.7 trillion in value in 2010, according to a new report by Zillow.com, it underscores the fact that homeowners who buy for the long term have historically seen the value of their investment increase over the years. In inflation-adjusted terms, the median U.S. home sale price in the third quarter remains approximately 9.5 percent higher than in 1990, despite falling 26 percent from peak levels, according to calculations based on NAR data.

Says Greg Hebner, chief operating officer at Sorrento Capital, an Irvine (Calif.) asset management firm: "You should at least be looking at housing now," especially as interest rates are low and homeowners can deduct mortgage interest from their income taxes. "It's still a good game" if a buyer understands the risks, has consistent income, and purchases a house he can afford, Hebner says.

When Supply Is Limited

Based on data since 1968, nominal U.S. home prices have risen 5.5 percent annually and outpaced inflation by about 1 percent to 2 percent, says Lawrence Yun, NAR's chief economist. The main reasons housing has grown faster than inflation, he says, are that more people wanted to buy in places with a finite supply of developable land, which drove up prices, and owners increased the value of their properties through home improvements.

Home prices followed this pattern through most the 1990s but started shooting up in the early 2000s. Between 2000 and 2006, nominal prices rose 89 percent, according to data from Moody's Economy.com and Fiserv (NasdaqGS: FISV - News), a financial service company in Brookfield, Wis.

Economists from NAR, Fiserv, and Moody's Analytics interviewed for this story expect home prices to continue to grow slightly more than inflation in the long term. Still, buyers are not likely to see prices skyrocket the way they did in the early 2000s, at least in the near future.

Up by Half, or More

In an analysis of the country's 25 largest metro areas, Businessweek.com found that the Portland, Ore. area had the largest real price gain since 1990, with the median sale price in this year's third quarter ($242,100) up about 85 percent over 1990, in inflation-adjusted terms. Home prices in the Denver, Baltimore, and Seattle areas also made gains of more than 50 percent in that period.

Yet in some other markets where homeownership skyrocketed during the housing boom, inflation-adjusted prices have fallen so dramatically that they are now below 1990 levels. Real prices in the Atlanta metro, for instance, are down about 21 percent compared with 20 years ago, and in Sacramento they are down 19 percent.

After recovery from the housing bust, "we expect house prices to settle into a price-growth trend that's slightly higher than inflation over the long term. So in that sense, housing is still a long-term investment with a positive yield," says Andres Carbacho-Burgos, an economist at Moody's Analytics.

Securities Look Better

After accounting for the time and money put in for property taxes, home insurance, security, and maintenance, "investing in a home doesn't have the rate of return of a diversified, well-managed portfolio in stocks and bonds," adds Carbacho-Burgos. Securities potentially offer greater returns, but buyers are wary.

A national housing survey by Fannie Mae shows that in the third quarter this year, 66 percent of consumers believed buying a home is a safe investment, compared with 16 percent who believe stocks are safe. That does not mean confidence in real estate has not been shaken in recent years: In 2003, 83 percent considered a home a safe investment.
Fannie Mae's survey also showed that 59 percent of respondents still believe owning a home is a good way to build wealth, and 84 percent believe buying makes more sense than renting.

Assuming home prices continue to increase 1 percent to 2 percent better than inflation, a buyer needs to own the property for at least five years to break even and cover selling costs, says Sorrento Capital's Hebner.

How 2011 Shapes Up

According to the latest forecast by Moody's Economy.com and Fiserv, nominal home prices in the U.S. will decline 4.8 percent from the fourth quarter of 2010 to the third quarter of 2011, when they are forecast to reach their trough.
NAR estimates that in 2010, 4.8 million homes will be sold in the U.S.—less than the 5.2 million sold in 2000, which is regarded as a "normal" year, says Yun, as the market had not yet overheated.

As the market normalizes, Yun expects sales volume to rise 6 percent year-on-year in 2011—assuming GDP grows 1.9 percent, 1.5 million jobs are created (bringing the unemployment rate to about 9.5 percent), and mortgage rates stay near 5 percent. Markets with high foreclosure rates, such as Nevada, Arizona, and Florida, will remain volatile.


David Stiff, chief economist at Fiserv, says despite hopes that we can avoid another housing bubble, there likely will be upswings again in the future. "In general, people are optimistic" and get caught up when times are good, he says. "When you see the next cyclical upswing in housing, try not to get carried away."

Biggest Metros With the Best Long-Term Real Estate

Best Performers

For many U.S. residents burned by the housing bust, the notion that real estate can not only tread water but actually increase in value might seem a fairy tale. It's not. A Businessweek.com analysis of home sales data from the National Association of Realtors shows that in 18 of the nation's 25 biggest metro areas, home prices grew in value between 1990 and 2010. In one area the change in real dollar price was as much as 85 percent, a return applying only to those who bought homes as a long-term investment, not for easy money flipping real estate. Seven of these metros lost value—generally the result of overbuilding during the real estate boom. Despite recent housing woes, real estate remains one of the best investments the average American can make. And unlike a stock certificate, it provides a place to live.

 1. Portland-Vancouver-Beaverton, Ore.-Wash.
1990 Price: $130,590 ($78,200 in 1990 dollars)
2010 Price: $242,100
Change in Real Dollars: +85.4 percent
Population: 2,241,841
Year Home Prices Peaked: 2007
Notwithstanding recent declines, Portland area home prices (adjusted for inflation) remain significantly higher than 1990 levels. The median price rose quickly from 2004 through 2007, peaked at about $311,000 (in 2010 dollars) in 2007, and has since dropped by about 22 percent. Moody's Economy.com and Fiserv predict prices will reach their trough in fourth-quarter 2011.
2. Baltimore-Towson, Md.

1990 Price: $152,300 ($91,200 in 1990 dollars)
2010 Price: $257,100
Change in Real Dollars: +68.8 percent
Population: 2,690,886
Year Home Prices Peaked: 2007
From 2000 through 2005, Baltimore area home prices skyrocketed. The growth rate in nominal prices increased from 3.4 percent year-on-year in 2001 to 20.6 percent in 2004 and 22.3 percent in 2005, according to price data from the National Association of Realtors. In 2007, the median home price peaked at $301,412 (in 2010 dollars). Since then, prices have fallen about 14.7 percent. While well above 1990 levels, prices are expected to continue falling and should bottom in third-quarter 2011, predict Fiserv and Moody's Economy.com.
3. Denver-Aurora-Broomfield, Colo.

1990 Price: $144,290 ($86,400 in 1990 dollars)
2010 Price: $238,500
Change in Real Dollars: +65.3 percent
Population: 2,552,195
Year Home Prices Peaked: 2006
Metro Denver housing prices grew fastest from 1999 through 2001, when nominal prices increased at double-digit rates, according to a report by the Metro Denver Economic Development Corp., a regional economic development group. Since reaching a peak in 2006 at $270,340 (in 2010 dollars), the median home price has fallen nearly 11.8 percent in real terms. Moody's Economy.com and Fiserv expect prices in Denver to reach a trough in third-quarter 2011.
4. Seattle-Tacoma-Bellevue, Wash.

1990 Price: $204,240 ($122,300 in 1990 dollars)
2010 Price: $308,200
Change in Real Dollars: +50.9 percent
Population: 3,407,848
Year Home Prices Peaked: 2007
Home prices in Seattle have grown significantly over the last 20 years. The metro area's housing market exploded in the late 1990s as the population grew. Nominal price increases slowed in 2002 and 2003, but jumped to 19 percent in 2004, 11 percent in 2005, and 14 percent in 2006, show NAR data. Prices peaked in 2007 at $407,607 (in 2010 dollars). Adjusted for inflation, prices are now about 24.4 percent below that level.
5. New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.


1990 Price: $285,070 ($170,700 in 1990 dollars)
2010 Price: $404,100
Change in Real Dollars: +41.8 percent
Population: 19,069,796
Year Home Prices Peaked: 2007
Inflation-adjusted home prices in metro New York were stable through most of the 1990s and started rising rapidly in the early 2000s. The median sale price peaked in 2007 at $494,840 (in 2010 dollars)—about 73.6 percent above 1990 levels in real terms—and has since dropped by about 18.3 percent. Fiserv and Moody's Economy.com expect prices in the area to bottom in 2011.
6. Miami-Fort Lauderdale-Pompano Beach, Fla.

1990 Price: $152,140 ($91,100 in 1990 dollars)
2010 Price: $214,800
Change in Real Dollars: +41.2 percent
Population: 5,547,051
Year Home Prices Peaked: 2006
Metro Miami home sale prices soared for years, growing by 164.4 percent from 1990 through 2006 in real dollars. In recent years, however, nominal prices dropped quickly, coming down 22 percent year-on-year in 2008 and 25.9 percent in 2009. In third-quarter 2010, Miami had the country's seventh-highest metro foreclosure rate, at 2.42, according to RealtyTrac. Fiserv and Moody's Economy.com do not expect the Miami market to reach its trough until 2012.
7. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.

1990 Price: $246,160 ($147,400 in 1990 dollars)
2010 Price: $338,600
Change in Real Dollars: +37.6 percent
Population: 5,476,241
Year Home Prices Peaked: 2006
Washington area home sale prices grew by nearly 90 percent in real terms between 1990 and 2006, when they peaked at $467,000 (in 2010 dollars). They have since fallen 27.5 percent and Fiserv and Moody's Economy.com expect continued decreases in 2011. Still, the area remains one of the country's strongest metro economies because government staffing demand keeps unemployment low.
8. Boston-Cambridge-Quincy, Mass.-N.H.

1990 Price: $267,030 ($159,900 in 1990 dollars)
2010 Price: $366,500
Change in Real Dollars: +37.2 percent
Population: 4,588,680
Year Home Prices Peaked: 2005
"Metro Boston's housing market was affected by the real estate bubble earlier—and less severely— than other metro areas around the country" and sale price declines have brought homes to historic affordability levels, according to a 2009 paper by the Concord Group, a real estate consultancy. Prices peaked in 2005 at $462,160 (in 2010 dollars) and have since dropped a total of 20.7 percent. Despite the fall, home sale prices have still increased in real dollars over the last 20 years.
9. San Francisco-Oakland-Fremont, Calif.

1990 Price: $433,030 ($259,300 in 1990 dollars)
2010 Price: $588,900
Change in Real Dollars: +36 percent
Population: 4,317,853
Year Home Prices Peaked: 2007
San Francisco housing prices rose in the 1990s during the tech boom. In the past decade, the fastest growth occurred in 2004 and 2005, when nominal prices increased by 15 percent and 11.5 percent, respectively. In 2007, prices peaked at $847,873 (in 2010 dollars). While prices are now 30.5 percent below peak, they remain well above 1990 rates and have been increasing recently. In third-quarter 2010, the nominal median sale price was up 9.4 percent year-on-year, according to data from the NAR.
10. Houston-Sugar Land-Baytown, Tex.

1990 Price: $118,070 ($70,700 in 1990 dollars)
2010 Price: $158,900
Change in Real Dollars: +34.6 percent
Population: 5,867,489
Year Home Prices Peaked: 2007
While home prices shot up and then plunged over the last decade in most parts of the country, the Houston market has been stable: The greatest fluctuation in the last decade was an 8.5 percent year-on-year nominal price increase in 2002. A recent survey by the Brookings Institution and the London School of Economics and Political Science ranks Houston fifteenth among U.S. metros for recovery from the recession, reported the Houston Chronicle.

 Source: Yahoo Finance

Friday, January 7, 2011

Remodeling Your Home

Remodeling a Home
Quite often, it is necessary or desirable to remodel your home. This article provides an overview of some of the economic and stylistic issues that you should consider when undertaking this endeavor.

Remodeling Your Home

Renovating an existing home can be a significant undertaking. There are budget issues to resolve, permits to obtain, contractors to interview, and legal factors to consider. This article provides an overview of issues you may want to consider when updating the look or structure of your home.

Budgeting Basics

Establishing a budget is an important first step for many homeowners. Costs vary widely, depending on whether you pursue a standard renovation project with materials purchased from a national chain store vs. a high-end remodel with elements designed to your specifications. For example, REMODELING Online has estimated that the cost of a kitchen renovation can range from $17,928 to more than $54,241, depending on the scope of the work done. An upscale makeover with elements custom-designed for a homeowner may cost significantly more.

REMODELING Online's 2006 Cost vs. Value Report presented the following national averages for mid-range renovations frequently undertaken by homeowners:
  • Vinyl siding replacement: $9,134
  • Vinyl window replacement: $10,160
  • Bathroom remodel: $12,918
  • Roof replacement: $14,276
  • Deck addition: $14,728
  • Bathroom addition: $28,918
  • Basement remodel: $56,724
Keep in mind these numbers are averages, which means you may be able to spend less. If you are just beginning to think about a renovation project, visit several home improvement stores to get prices for the types of materials that appeal to you. Ask representatives to help you develop a list of items you are likely to need for a given project. Larger stores may employ personnel who can develop rough drawings of kitchens or other rooms to help you determine your options for placement of appliances, lighting and other issues.

Bang for Your Buck

Many homeowners want to select renovation projects that are likely to yield the highest return on their investment when they ultimately sell their home. The following renovations are those most likely to result in a payback for homeowners:

Average Cost Return on Investment
Vinyl Siding Replacement $9,134 87.2%
Minor Kitchen Remodel $17,928 85.2%
Window Replacement (Wood / Vinyl) $11,040 / $10,160 85.3% / 83.7%
Bathroom Remodel $12,918 84.9%
Two-Story Addition $105,297 83.2%
Attic Bedroom Remodel $44,073 79.9%
Although return on investment is important, also consider your lifestyle. If your family is growing, an extra bathroom or bedroom may be your most immediate need, even if a kitchen remodel would result in a higher return on investment. In contrast, empty nesters may be more inclined to take on renovations that reduce ongoing maintenance, such as vinyl siding, instead of adding space to their home.

Planning for Permits

In most instances, a building permit is required when the living area of a home is changed or when structural work is undertaken. For instance, transforming an unfinished attic into a master bedroom suite typically requires a permit. The types of permits mandated by different jurisdictions vary considerably. If you are undertaking a project that encompasses structural, plumbing and electrical work -- such as a new bathroom or kitchen -- you may need separate building, plumbing and electrical permits.

The National Association of the Remodeling Industry (NARI) recommends that homeowners not take out their own permits but instead leave this task to their contractor, who typically is familiar with the permitting process in a given locale. Typically, the individual who obtains a permit is considered to be the contractor and is legally responsible if work does not adhere to local building codes. Requiring your contractor to obtain permits protects you legally and is part of the job you are paying a contractor to do. Because it can take weeks or months to obtain permits, be sure to leave time in your schedule for the permitting process.

A Written Contract

A contract defines the scope of a job and provides a degree of legal protection for both the contractor and the homeowner. Although contracts vary in length, they frequently include the following provisions:
  • Details about what the contractor will and will not do
  • A list of materials specifying size, color, model and other particulars
  • Approximate start and completion dates
  • Design plans that you approve before work begins
  • Right of Recision, a federal law that requires a contractor to inform a homeowner of the right to cancel a contract without penalty within three days of signing it
  • Financial terms, including total price, payment schedule and cancellation penalty
  • Warranty covering materials and workmanship for a minimum of one year
You may want to ask your attorney to review the contract before you sign it.
Paying attention to your budget, potential return on investment, permits and a written contract may help ensure that your renovation project is a success. Even if problems do emerge, you will have a framework for dealing with them and potentially moving on to a satisfactory completion.

Checklist

  • Ask your local Better Business Bureau if they can provide information about the contractors you are considering.
  • Find out whether you need any special permits or zoning variances from your municipal government before starting work.
  • Make sure that you and the people who will be working on your home have adequate insurance coverage.

Thursday, January 6, 2011

Divorce and Your Finances

Keeping an eye on your financial health during a divorce is essential. This report outlines the rules that may apply and offers tips on some traps to avoid.

Divorce can be a complicated and challenging process in which details are easily overlooked. Protecting your financial health during this time is crucial, and no one should enter this process without a trusted attorney (specializing in divorce) on his or her side. Equally important is knowing the laws that shape divorce proceedings, and the impact they can have on your assets.

Dividing the Assets

Typically, everything you and your spouse acquired from the day you were married is subject to division. The exceptions are individual inheritances, gifts to an individual spouse, and assets acquired before marriage. When assets are divided, the court considers each spouse's earning ability, the length of the marriage, and how much each spouse contributed to building household assets.

The exception to this are the nine "community property" states -- Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Under the laws of these states, almost all assets will automatically be divided equally.

Don't try to hide assets from the court, either by neglecting to mention them or transferring them after the proceedings have begun. This can trigger an "omitted asset" penalty and force the court to redivide your property.

Dealing With Debt

Don't assume that a divorce will erase any debt. If you live in a community property state, debt -- like your assets -- will be split down the middle. You will be responsible for half of all debt in jointly held accounts and, in some cases, for half of a spouse's individual debt as well.

If you don't live in a community property state, you remain responsible for your individual debt (but not your spouse's) and any debt in jointly held accounts. One important trap to avoid is maintaining joint accounts after the divorce. Your spouse could continue running up expenses and leave you with the debt. As soon as the divorce is finalized, freeze all joint accounts and have your creditors reclassify them as individual accounts. Most creditors will do this at your request, though they are not legally required to do so. To protect your credit rating, make sure to keep up with monthly payments.

In addition, include the payment of debt as part of the settlement. Take on the responsibility for the debt yourself, if necessary, and take a share of the assets to pay the debt down.

If you and your spouse own a home that has appreciated in value, you may want to sell it before the divorce is finalized. Federal tax rules offer an exclusion of up to $500,000 in realized capital gains for married taxpayers. This amount is cut in half for single filers. Be sure to consult a tax advisor for additional information about these rules.

Tax Relief for Innocent Spouses

Divorce will not protect you from the IRS. If you filed jointly with your spouse, you can be held liable for delinquent taxes.

In 1998, Congress enacted legislation that offers protection to spouses who filed joint returns, relieving them of paying taxes that are the responsibility of an ex-spouse. The law also allows an innocent spouse to limit tax liability if he or she has been living apart from the delinquent spouse for at least 12 months from the time the joint return was filed. Talk to a tax advisor about how this information relates to your own situation.

Your Retirement Assets

Money in your 401(k) or pension plan may legally be divided during a divorce. The divisible amount typically begins to accumulate on the day you are married and ends on the day you are divorced.

To claim a share of a spouse's 401(k) or pension plan benefit, you need to obtain a court order called a Qualified Domestic Relations Order (QDRO) and provide it to your spouse's plan sponsor before distributions are completed to your spouse, which prevents your spouse from making withdrawals.

You and your spouse can decide to not divide your 401(k) assets or pension plan benefits, but you should make this agreement in writing and include it as part of the settlement to prevent the courts from declaring the money divisible.

If there are outstanding loans against a 401(k) and only one spouse was able to contribute, the noncontributing spouse may be exempt from paying back the loan. However, if the purpose of the loan was something that benefited both spouses -- such as a home -- the noncontributing spouse's share of the assets may be reduced to facilitate repayment of the debt.

If you do receive a share of a spouse's 401(k) assets or pension plan benefit, it may be best to roll over your share immediately into an individual retirement account (IRA) to avoid taxes and maintain tax deferral. You should discuss this with your attorney or a financial advisor familiar with divorce proceedings as soon as you anticipate a divorce.

Estate Planning

Be sure to review your will or, if you don't have one, draw one up. You should consult an attorney familiar with your state's estate laws to ensure that your assets are properly distributed. Do not wait until the divorce is final. You should review and amend your estate plan at the same time you decide to commence a divorce proceeding. Also make sure to review beneficiary designations for pensions, 401(k)s, and life insurance policies. Federal law requires a spouse to be the sole beneficiary of pension or 401(k) benefits unless that right is waived in writing by the spouse.

If you find yourself faced with divorce, it is essential to protect your financial future. Enlisting the help of an attorney and carefully monitoring the process can ensure that your interests are considered and that you won't need to revisit the proceeding later on.

Next Time, Should You Have a Prenup?

A prenuptial agreement can be a valuable tool for protecting your finances. These documents are difficult to contest in the event of a divorce. The prenup should be drawn up by both you and your spouse with the assistance of attorneys, and should include:


  • Current assets and debts
  • Financial arrangements (such as alimony payments)
  • Estate and inheritance plans
  • Financial care and custody of children from previous marriages
  • How assets will be divided in case of a divorce
Finally, include in your prenup a future date to review this document. Should circumstances change, you can then amend the agreement.

Summary

  • The division of assets in a divorce depends on the state where you live.
  • Be sure to include debt resolution as part of the settlement, and be sure to continue making payments on any outstanding debt.
  • Once the divorce is granted, freeze all joint accounts and have them converted to individual accounts.
  • Unless waived in writing, 401(k) and pension plan benefits are divisible during a divorce by a Qualified Domestic Relations Order.
  • Review your beneficiary designations for 401(k) plans, pension plans, and life insurance policies.
  • Review your will, or draw up a new one.
 Source: Yahoo Finance

Wednesday, January 5, 2011

Are You Still A Real Estate Agent? If So, Why?

Seriously, this now has to be a question asked of many Realtors out there. It’s funny. When data that just hammers home the reality of the imminent housing sector collapse, where is the National Association of Realtors and Lawrence Yun?

Right now someone should be standing post lighting the bon fires and ringing the alarm bells. You know they give tsunami warnings when an earthquake happens in the ocean? Well someone needs to be sounding the alarm across the land right now telling everyone in the real estate business to head for cover.

It’s not just the agents who need to head to higher ground. If you’re trying to sell a house or complete a short sale you may want to don the life jacket and begin rationing the morsels that you have in the cupboard.

Don’t believe me? Mark it down. Take a note, put it in your wallet or pocketbook and then take it out in about 6-12 months and look at it. If you don’t take heed now, you’ll be wondering why you didn’t listen and why you didn’t jump head first into the lifeboat.

Why do I sound so ominous? Well, I get info, I get data, I see studies, and right now the storm clouds are as bad as I have ever seen them. But I’m not an economist so I’ll just tell you what the guys with the MBA’s are saying.

Maybe then you’ll stand up and take notice.

The third quarter reports from Fannie Mae, Freddie Mac and the FHA were recently released. In those reports it was stated that the combined Real Estate Owned (REO) inventory of the coven of debt rose 24 percent since the 2nd quarter and an unbelievable 93% over the same period last year.

For you math challenged, that’s almost a doubling of REO inventory! Let me pose it to you in a different way.

There are nearly 300,000 REO properties sitting on the books of JUST Fannie, Freddie and the FHA. That doesn’t even include the other lenders sitting on bad mortgages and REO’s.

So what does all of this mean? It’s really simple and something that I have been saying for years. Realtors don’t understand, or refuse to acknowledge the irrefutable Law of Supply And Demand.

Instead they go to flowery seminars and meet-ups where everyone speaks the same language and no one speaks the hard facts. Listen, if you were in the used car business… (as if you wanted to escalate up the food chain) and there were a bunch of cars on the lot and no buyers, would you hang around just waiting, hoping someone would eventually walk onto the lot?

Now imagine that same lot being on the route for 50 trucks bringing hundreds of more cars to sell. What would you do? Ya can’t even sell the ones on the lot now! Get the picture?

If you have a ton of savings and want to wait it out, ya might survive the real estate Armageddon. But how many real estate agents can actually do that?

Diana Olick from CNBC’s Realty Check said it best today when she penned an article about this very subject and closed it with a great, punctuating quip.

“We can talk prices, affordability, confidence, foreclosures, scandals, politics, whatever you want, but in the end it comes down to supply and demand.

We are looking at a ballooning supply coupled with dwindling demand. You do the math.”

Source: RealEstateRadioUSA

Tuesday, January 4, 2011

The Barometer Towers: New York's 10 Biggest Available Spaces

Manhattan's commercial real estate brokers talk about vacancies the way newlyweds talk about divorce. It happens, just not to us.

Our island market is thought to be sheltered from the forces of over-building that imperil other cities. But in October 2007, 3 million square feet of office space flooded that market in a single month. "The news has caused a low buzz of concern in the industry," wrote the New Jersey Record, "that this could be the first sign that New York's office market is not as impregnable as once thought."

Fast-forward three years, and we have to hand it to our neighbors in Jersey. Several of the huge vacancies that opened up in that black month still haven't been filled, and many more have come onto the market since then. Of the three biggest space hogs in Manhattan, banks have collapsed and many media companies have shrunk; only law firms have held their own.

In 2010, mega-leases were signed by companies like Société Générale, Proskauer Rose and Polo Ralph Lauren-though none as big as 2009's largest of 540,944 square feet by Paul Weiss. Leasing volume was higher last year than in both 2008 and 2009, according to Grubb & Ellis' 2011 Forecast for the New York and the Tri-State Area, to be released this week. At last, deal activity climbed back up to the 13-year average.

Dozens of companies jumped around, taking advantage of a weak market to lock down cheap rents and sweet concessions. In the final tally, they took a 2.5 million-square-foot chunk out of the 52.5 million square feet of office space available at the beginning of 2010, according to the report.

Looking ahead to 2011 now, the year will see a "market of situations," said Richard Persichetti, market research director for Grubb & Ellis, meaning that landlords with nearly full buildings will be able to command higher rents and fewer concessions, while those with more empty space will keep offering recession-era deals. Overall, he expects the vacancy rate to continue declining this year.

Click through our top 10 list of the Manhattan towers with the most available space, contiguous and otherwise, and it reveals that in many cases, the glass (and brick and concrete) is still half-empty. From the chilly halls of 58 Broad Street to the darkened windows of 11 Times Square, there's plenty to watch in 2011.

The data was provided to The Commercial Observer by CoStar, and is current as of the end of 2010.

 Source: Observer

Monday, January 3, 2011

January buying advice: Bidding on a foreclosure and a warm place to retire

Buying Advice

Learn how best to snag that distressed home that everyone wants, where the hot spots are for retirees and how soon you can get back into homeownership after a short sale.

The housing market may seem like a cold, bleak place this January, with a looming inventory of foreclosures and a pall of uncertainty hanging over many markets. In this installment of Buying Advice, we'll tell buyers how to use this situation to their advantage and beat out their competition for bank-owned bargains. We'll also point you in the direction of some appealing warm-weather markets with bright prospects, and shine a light on what it takes to recover from a short sale.

The right way to bid on a foreclosure
During this wintry month, you'll probably find that most of what's on the market is bank-owned or a short sale. (Who would want to sell right now unless they had to?)

These distressed properties can be a real bargain, if you and your agent handle it correctly, says Kim Drusch, an agent with Century 21 Award in Escondido, Calif., who represents both buyers and banks in property sales.

Unfortunately, she says, many agents drop the ball when making an offer, and lose the deal for their clients.

"The offers are written so poorly that the letter is rejected" by the bank, Drusch says. That's a problem when you have 10 offers on a "screaming deal" of a house, she says.  And that may be why you have lost out on bids that you thought were in the bag. Here are some of the most common mistakes when bidding on REO, or bank-owned, properties.

1. Missing or incorrect deposit check
The bank wants to see a deposit check that is dated on the day of the offer, not a check that has been used for three different offers.

2. Bad bank statement
Again, the lender wants to see a recent bank statement — as in the last 30 days — with the bidder's name on it and enough money to qualify their purchase. The account number can be blacked out, Drusch says.

3. Missing letter from the bidder's lender
Asset managers for REOs want to know, Drusch says, that she has talked to a bidder's lender to verify FICO score, employment, funds and the bidder's ability to close in 30 days. That should all be confirmed in a lender letter.

Moreover, she says, buyers should be realistic about their expectations when dealing with a bank, rather than a typical seller.

While most traditional sellers will pay for certain inspections or minor repairs, most bank asset managers won't, she says. That's the bidder's responsibility. However, a good agent should ask for any reports done in previous inspections, she says.

But please don't neglect inspection, Drusch cautions. Vacant properties carry more risk of unseen problems, from mold to faulty plumbing to wiring damage caused by irate former owners.

Retirement hot spots
With Florida and Arizona home markets still tanking, where should warm-weather seekers turn for their retirement home?

Some of the best spots for investment these days are in the South, says Local Market Monitor President Ingo Winzer.

"There are many areas with a good outlook for home prices, a large university or universities and good access to health care," he said.

LMM selected its top warm-weather picks for retirees, ranked by their home-price outlook and size — populations between 200,000 and 600,000 — amenities, stable employment and quality medical facilities. Keep in mind, these are not markets expected to boom in coming years, just to appreciate steadily, therefore providing a haven for investment.

1. Durham/Chapel Hill, N.C.
Home to Duke University and the Research Triangle, this market may be stagnant now, but it has a bright outlook over the next couple of years. By 2013, the third-quarter average home price of $232,500 is expected to rise 6.6%.

2. Augusta/Richmond County, Ga.
This beautiful city along the Savannah River is home to Augusta State University, the Medical College of Georgia and University Hospital. Its average home price of $179,600 is expected to rise 6.2% by the end of 2013.

3. Las Cruces, N.M.
The only Western market to make the list, this city thrives due to its large base of government employment. While home prices have declined here, as they have in most other cities on our list, it's poised for a strong comeback, Winzer says. The average home price of $162,200 is expected to rise 5.9% by fourth-quarter 2013.

4. Charleston-North Charleston-Summerville, N.C.
Southern hospitality and beautiful downtown architecture are draws to this town, which boasts stable employment, as well as the Citadel and the Medical University of South Carolina. The average home price of $256,300 is expected to rise 5.5% by the end of 2013.

5. Nashville, Tenn., and surrounding suburbs
There's no lack of things to do in this hub for health care, music and banking. Vanderbilt University, Tennessee State University and a strong performing-arts center provide plenty for locals to do. The average home price of $200,000 is expected to rise 2.6% by the end of 2013.

Rounding out the top 10 were: Hickory-Lenoir-Morganton, N.C.; Athens, Ga.; Columbia, S.C.; Wilmington, N.C.; and Bowling Green, Ky.

When can I get back into homeownership?
We've received many questions from readers wanting to know when they can expect to get a home loan again after a devastating financial event such as a short sale or foreclosure, including this one from "Jeff":

 "I was forced to sell my home short six months ago. Fortunately, that is the only negative thing on my credit report. How long do I need to wait before the FHA will consider me for a new, much lower-cost home loan?"

The answer depends on your situation at the time of the sale. According to the Department of Housing and Urban Development, borrowers are considered eligible for a new Federal Housing Administration loan if they were current on their mortgage and other installment debts at the time of their short sale and those proceeds served as payment in full.

It gets trickier if a borrower was in default at the time of the sale. Generally, the FHA will refuse to insure loans to these borrowers for three years from the date of the short sale.

Of course, as with anything else, there are exceptions. HUD will sometimes excuse defaults that were "due to circumstances beyond the borrower's control," such as the death of a primary wage earner, a long uninsured illness or lengthy job loss. However, its review of the borrower's credit report must indicate "satisfactory credit" before these circumstances.

Thursday, December 30, 2010

Importance of Lien Documents for Contractors

Lien-Document
Lien documents are a legally binding legislation that garners great importance among contractors as well as property owners. As such, they should be carefully written and vigilantly used according to the situation. 

What are Lien Documents?

In a very general sense, a lien is a notification of interest, a passive right of one party to retain a property until all debt or financial obligations associated with that particular party are paid in full. This essentially makes the property unsellable.

What Does It Do For Contractors?

Liens were created to secure the financial interests of the contractors working on specific projects. It is very commonly used in the construction industry to protect them from getting cheated out of their hard earn money. Putting a lien on property makes essentially makes it unsellable and the ownership cannot be transferred until all debts associated with that property are paid in full.

Why Is It Needed?

Oftentimes construction projects are started and finished with the assumption that once all work is done, the contractor will be paid in full. However if the owner is not satisfied for whatever reasons or simply doesn’t feel like paying, the contractor is left with no options since he can’t just remove the property and sell it somewhere else. Liens, in particular a mechanic’s lien provide contractors with that sense of security.

It should be noted that form of legal protection is usually used as a last resort by contactors. In addition to completing their project on time, they want to establish a good working relationship with the clients and owners. Lien documents ensure that both parties are kept in check and the entire project goes smoothly from start to finish.

Source: Lien Documents Southern California

Wednesday, December 29, 2010

Home Builders Checklist - What to look for?

There are hundreds of home builders actively involved in construction projects all across the United States. As such, it’s not uncommon for them to work in same counties. With so many of them advertising their homes in the same city, prospective buyers sometimes find it difficult to determine which builder to choose. This post will highlight a checklist that will help answer that question for them.
  • A Quality Home – Is the builder offering the home you have been looking for? Does the house itself fulfill all your requirements?
  • Home Builders Experience – Buyer are always more comfortable purchasing houses that are constructed by professional builders who have years of experience in construction.
  • Recent Projects – One can get a good idea about a builder by examining the projects they have worked on. Always ask and if possible visit their recently completed projects. They will speak volumes about the quality of their homes and their service.
  • Competitive Pricing and Finance Options – House builders should price their houses competitively and offer a reasonable mortgage rate with respect to the current housing market. Offering other cash incentives such as seasonal discounts promotes them ever more. 
  • Accolades and Accomplishments – Achievement awards are sure sign of a good builder. Home builders take great pride in their accolades and abundantly display is at every opportunity.
These are just a few qualities professional home builders should have. Finding the perfect house takes time. Buyers should do their research and browse through different builders and their designs before narrowing their selection.

Source: Home Builders Chester County

Tuesday, December 28, 2010

7 Things to Look for in New Custom Homes


Looking for new custom homes is an exciting prospect for any family. Such homes are loaded with luxurious amenities that make the house look more attractive and desirable to live in. In light of this, I have created a check list that I recommend buyers should go over when browsing new custom homes.
New custom homes should have the following things:
1.       Fireplace – A fireplace is a great addition to the living room. It makes it look bigger and more attractive and the best part is that is serves as an ideal spot to be around during winter.
2.       Spacious Rooms – Custom rooms should be spacious and properly ventilated. Every room should also have a large window.
3.       Walk-in Closets – These are an absolute must for all rooms in addition to the master bedroom.
4.       Fans – Agreed almost all homes are centrally air conditioned but depending on the weather, the cool breeze from a fan may just be what is needed. Plus they don’t consume as much electricity as centrally air conditioned units.
5.       Fully Equipped Kitchen – A kitchen is essentially the rally point of a household. It has to look the part and must be loaded with all the cooking amenities and luxuries such as large countertops and microwave oven.
6.       Full Size Bathroom – Many home builders provide a full size bathroom with all the amenities for the master bedroom but only add half size bathrooms for the rest of the house. If you are looking for custom new homes, look for one that has large bathroom for every room.
7.       Huge Front Porch & Backyard – A home has to look good from the outside as well as inside. Look for a home with a huge backyard and/or a beautiful front porch.
Granted that all of these features may not be present in new custom homes, one should still seriously consider a house that has most of them if not all. After all you are paying good money. You deserve a good home.

Resource: New custom homes PA

Monday, December 27, 2010

5 Best Places to Eat – New Jersey Shore Vacations

Looking for a perfect place to eat during New Jersey shore vacations? Below I will list five very popular areas that are famous for many things including, recreation, living, food and other attractions. If you plan to visit the Long Beach Island areas, be sure to visit these places.

  1. Barnegat Light

Barnegat Light is worldly famous for the Old Barney, a lighthouse established in 1834. It is now a part of the Barnegat Light State Park. The city offers delicious cuisine and has many restaurants.

  1. Loveladies

Loveladies has beautiful scenic beaches and is home to the Long Beach Island Foundation of Arts and Science. Many fast food and specialty restaurants are located here to cater to people of varying tastes.

  1. Surf City

Surf City is famous for two things - Surf City yacht club and its delicious cuisine. Many visitors come flocking in all year long for their vacations especially during the summers to get a taste of what it has to offer.

  1. The Dunes

The Dunes offer a calm peaceful and serene atmosphere. It is not densely populated like its neighbors and is offers mouth watering Italian, Chinese and American Dishes.

  1. Beach Haven

Beach Haven is a haven to modern home and elegant resorts making it an ideal spot for summer vacations. The quality and variety of cuisine here is in a league of it own.

Next time you are considering New Jersey shore vacations, be sure to visit these places. Their cuisine will blow you away and will make you come back for more.

Resource: New Jersey Shore Vacations