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Posted
Aug 25 2009, 05:57 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This devil's advocate post comes from Jim Wang at partner blog Bargaineering.
A few years ago, when the housing market was sizzling hot, everyone and their mother talked about how their home was a fantastic investment. They talked about how a home that sold 10 years ago had quadrupled in value over the last five and cursed themselves for not buying more.
I knew someone who owned four rental properties, all bought with adjustable-rate mortgages, and was making a "killing" on the rents and appreciation. I knew someone else who was looking at his paper riches and marveling at how wonderful homeownership was.
Then the housing market stalled. ARMs reset. People were in rough shape. Those who overextended learned something the prudent have always understood: As much as your home is a great place, it's not an investment.
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Posted
Jul 08 2009, 10:16 AM
by
Karen Datko
Money Blog: Smart Spending Blog - MSN Money
This post comes from Martin H. Bosworth at partner site ConsumerAffairs.com.
Many an enthusiastic new homeowner has been horrified to find that the warranty offered to them by the builder not only does not cover a host of problems, but forces the owners into private, often complex and costly arbitration schemes -- which nearly always favor the builder in the end.
That's the premise of "Home Court Advantage," a new report (.pdf file) released by Public Citizen that explores the homebuilding industry's use of private arbitration to avoid responsibility for structural defects and flaws in their products -- often violating state consumer protection laws.
"The arbitration companies know that their futures depend on keeping the people who hire them happy, and that means the builders and warranty companies," said David Arkush, director of Public Citizen's Congress Watch division. "As a result, the system is stacked against the consumer."
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Posted
Jun 29 2009, 11:42 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This guest post comes from "vh" at Funny about Money.
Sometimes I think the modest things I have in life are so much better than anything I could buy for a zillion dollars. Maybe I suffer from the sour-grapes syndrome. But ... well, you tell me. Is this sour grapes or common sense?
This morning La Maya invited me to go with her to an estate sale in one of the tonier parts of the far northwest Valley. The sale organizer touted "upscale" goods in a "4,000-square-foot house." So shortly after dawn cracked, we set out for the ocean of orange tile roofs that is the westside.
When we got to the neighborhood where the sale took place, we found ourselves in one of those curvilinear tracts where all the stuccoed houses look pretty much the same. This homeowners association dictated dust-brown paint with mud-brown trim. It being a fancy tract, some of the houses had stone facades: dirt-brown granite, every one. If you came home late at night and three sheets to the wind, you'd never figure out which of the half-million-dollar shacks was yours.
But seriously: The area was clean, obviously expensive, and very nice. I guess.
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Posted
Jun 15 2009, 11:12 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
The rules have changed for the $8,000 first-time homebuyer tax credit contained in the federal government's massive economic stimulus plan.
Qualifying homebuyers can now use the anticipated credit to secure a loan to help pay closing costs and enhance their down payment, then pay it off after they file their 2009 (or amended 2008) tax return. How handy is that? In fact, in some states, people can leverage the tax credit to buy a home without using one dime of their own money for a down payment.
Wow. That seems great. Rather than having to save for a house, you can use this bailout from the government to close the deal even before the tax credit is deposited in your checking account. The rule changes "should really help stimulate home sales!" "FFB" at Free From Broke predicted.
But haven't we learned that buying a home without saving first is a bad idea?
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Posted
Mar 24 2009, 09:23 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This guest post comes from Frank Curmudgeon at Bad Money Advice.
There was a time when owning the roof over your head was considered an attainable and wholesome mark of prosperity for American families. See, for example, the higher calling for which George Bailey gives up his youth in "It's a Wonderful Life." (In retrospect, George was making subprime loans from a dangerously overleveraged and illiquid bank. It was a simpler time.)
Over the decades, conventional wisdom on homeownership morphed from wholesome goal to sound idea, then to great idea, and finally to such a great idea that it was practically free money.
Then it all went kablooey, and conventional wisdom started denying that it ever said any such thing.
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Posted
Mar 19 2009, 05:27 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from Tisha Tolar at partner blog Wise Bread.
Drive down residential streets and it is likely you will find one with multiple listings. It may look like a lot of possibilities if you are in the market for buying a home, but if your house is on the market, it can be frustrating to see so many signs in your neighborhood.
Because many people are selling their homes, it is increasingly important to make your home stand out. This is especially true if you and some of your closest neighbors are selling homes at the same time.
In this case, if you have innovative neighbors who are easy to work with, these multiple sales can work to your advantage -- and theirs too.
Here are some tips to take advantage of this selling opportunity:
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Posted
Mar 03 2009, 01:29 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
Banks didn't exactly ride to the rescue of homebuyers who used those hinky subprime mortgages to get more house than they could afford.
But now one major bank says it's reaching out to help a new type of struggling homeowner -- folks who, through no fault of their own, were recently laid off and can't pay their bills.
Bailout recipient Citigroup says it can help thousands of those people with its new Homeowner Unemployment Assist program, The Associated Press reports.
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Posted
Mar 03 2009, 08:52 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
More and more people are placing ads looking for roommates to help share housing costs. Would you be willing to sacrifice privacy if someone helped pay the bills?
"Nickel" at FiveCentNickel asked his readers about the pros and cons. Their experiences varied greatly. Some welcomed the extra company and money, and others suffered through roommates from hell and beyond. Here's what they said:
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Posted
Feb 24 2009, 12:25 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
If you watched the Oscars, you know that Hyundai has sweetened its job-loss protection plan for those who buy or lease a new car.
Initially, Hyundai offered to take the car back without trashing your credit if you became unemployed in the first year of ownership/leasing. Now, in a limited-time offer, Hyundai will make your car payments for three months if you get laid off. You can return the car if you still can't find a job.
It's a clever device to boost sales when employment is uncertain for many. That's why homebuilders, home sellers, credit unions and other lenders are now offering job-loss plans.
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Posted
Feb 18 2009, 06:32 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from partner blog The Dough Roller.
Government Web sites provide a wealth of information about money-related topics. But finding what's out there can be a chore. This resource provides links to 70 government Web sites about everything from finding a job to buying a home and paying for college.
Buying a home and mortgages
- Buying a Home -- HUD. A step-by-step guide to the home-buying process.
- FCIC: How to Buy a Home With a Low Down Payment. This brochure describes how families can get into their own homes with little cash upfront. It explains mortgage insurance and how it works, and looks at the two options -- private mortgage insurance and government mortgage insurance.
- Buying a Home: It's a Big Deal. Information on selecting a real estate agent, commissions, and choosing real estate-related services.
- Home-Equity Credit Lines. Everything you'd want to know about a home-equity line of credit, including costs, interest rates, upfront closing costs, and how much you can borrow.
- Home-Equity Loans: Borrowers Beware! According to the FTC, "Homeowners -- particularly elderly, minority and those with low incomes or poor credit -- should be careful when borrowing money based on their home equity. Why? Certain abusive or exploitative lenders target these borrowers, who unwittingly may be putting their home on the line. Abusive lending practices range from equity stripping and loan flipping to hiding loan terms and packing a loan with extra charges."
- HUD -- 100 Q&As for Homebuyers. Covers just about any question a homebuyer could have.
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