Monday, February 24, 2014
Monday, February 17, 2014
Saturday, February 08, 2014
4 tips for living on a budget
Living
on a tight budget can be straining. Setting financial goals and creating a
budget are great starting points to making things work on a tight budget, but
just as important is developing healthy and smart financial habits.
Overspending often adds more stress to your life; the key is to live below your
means to give yourself more financial freedom. You can do a variety of things
to live on a tight budget.
Create a Budget
- Creating a budget is not always the easiest thing
to do, but it is an important step to keep finances in order. Provide as
much detailed information as possible on the budget sheet in order to see
where money is coming from and where it is going. Include all bank and
investment statements, recent bills, and income statements, as well as any
other paper containing income or expense information. If some numbers vary
each month, use a monthly average. Keep records of income and bills. Break
the expenses into two categories, fixed and variable, to give a clear idea
of what is an essential expense, like mortgage, rent, car payments, bills
and credit cards, and what will vary monthly, like groceries, eating out
and entertainment. Your goal is to get the budget sheet to have more
income than expenses. This will most likely take some budget adjustments
over a few months/ years. If you have a surplus, you can put that money
towards a down payment on a property.
Food
- Food is an essential part of life, bit it is
often one of the first things people cut back on when having a tight
budget. The key to smart food budget management is smart shopping. Coupons
and sales are a great start to minimizing the budget, but do not waste
food, either. Plan the menu and make the grocery list according to your
weekly menu. Also, properly handle the food by freezing it or consuming it
before it goes bad. Buying in bulk can also save a lot and mean fewer
trips to the store.
Habits
- Developing healthy and smart financial habits is
the key to making things work on a tight budget. Pay bills on time. Meeting
deadlines will not only prevent service interruptions, it will also save
money on late fees. Set up a standing order at the bank or pay bills
online automatically to ensure bills are paid on time. For other expenses,
set up an "envelope system" that will help keep you from
overspending on various expenses each month or pay period. An envelope
system is when you designate a letter envelope monthly expenses, like
groceries or entertainment, and put a set amount of cash for each category
into the envelopes. When the money is gone for a particular category, you
have to wait until the next paycheck to replenish and spend in that
category. That way, you spend only what your budget allows for in that
category.
Basic Money Saving Tips
- Stop spending on fancy coffees, expensive
lunches, smoking and drinking, entertainment, and all other items or
services that are not a necessity. This might mean canceling the cable,
cutting back on cellphone features, take your own drinks and chairs to the
beach, and stop smoking. Instead borrow movies from friends, rent books
from the library, and pack a lunch every day.
This article is presented to you by Miriam Engeln, working in sales at Century 21 Aruba, tel: (297) 5864242. For real estate inquiries please call or email: miriam@arubahouses.com
Saturday, February 01, 2014
Saturday, January 25, 2014
A Look at 2014 Housing Predictions
By Miriam Engeln, Aruba blogger since 2004; www.arubaconnections.blogspot.com and real estate sales agent at Century 21 Aruba.
As 2013 slips into the past, it's time to look forward to try to get a glimpse at what the coming year will hold for the housing market. The past year was definitely a year of recovery, with home prices gaining percentage and sales reaching a fever pitch in late spring. While a summer spike in interest rates took some of the momentum out of the market during the remainder of the year, economists are expecting good things for 2014. Here's a look at a few of those forecasts;
Increasing Inventory
Experts believe that inventory will increase in 2014 as rates move up and prices stabilize. "The pace of home value appreciation has leveled off and is beginning to slow down after peaking this summer. Much of this year's rapid growth in home values can be attributed to very strong demand, as low mortgage interest rates, relatively low home prices and a slowly improving economy helped draw buyers into the market,". "This slowdown in home value appreciation will contribute to a more balanced market and will help to ease some emerging affordability problems in a handful of very hot markets".
Rising Home Sales
"Despite rising mortgage rates and continued property-value appreciation, housing will remain generally affordable in most parts of the world." "With household formations expected to pick up and new home completions gaining more slowly, for-sale inventories may remain tight and vacancies low."
Decreasing Affordability
Not everyone foresees an improvement in home price affordability for 2014 though. Even if prices do not accelerate as quickly as they did in 2013, some believe that inventory will not be able to catch up with demand in the coming year. "We've come off of record high housing affordability conditions in the past year, and are now at a five-year low, but conditions are still the fifth best in the past 40 years. While the median-income family in many areas will still be well positioned to buy a home in 2014, income is barely budging given growth in consumer prices."
Investors Replaced By Repeat Buyers
Analysts at a housing market data website expects investors to take a back seat to primary residence purchases in the coming year. "2013 was the year of the investor, but 2014 will be the year of the repeat home buyer." "Investors buy less as prices rise: higher prices mean that the return on investment falls and there's less room for future price appreciation." He went on to say that repeat buyers will fill in the gap left from retreating investors, because unlike first-time home-buyers, they often have enough for down payments from the current equity in their homes.
In sum, economists see 2014 as year of increasing home sales and a moderate rise in home prices. Inventory will increase but not fast enough. Investors will exit the scene as foreclosures continue to decline and provide fewer distressed and discounted properties on the market. And if the unemployment rate can continue to tick down and incomes can increase more, the housing market will be on solid footing by the end of next year.
As 2013 slips into the past, it's time to look forward to try to get a glimpse at what the coming year will hold for the housing market. The past year was definitely a year of recovery, with home prices gaining percentage and sales reaching a fever pitch in late spring. While a summer spike in interest rates took some of the momentum out of the market during the remainder of the year, economists are expecting good things for 2014. Here's a look at a few of those forecasts;
Increasing Inventory
Experts believe that inventory will increase in 2014 as rates move up and prices stabilize. "The pace of home value appreciation has leveled off and is beginning to slow down after peaking this summer. Much of this year's rapid growth in home values can be attributed to very strong demand, as low mortgage interest rates, relatively low home prices and a slowly improving economy helped draw buyers into the market,". "This slowdown in home value appreciation will contribute to a more balanced market and will help to ease some emerging affordability problems in a handful of very hot markets".
Rising Home Sales
"Despite rising mortgage rates and continued property-value appreciation, housing will remain generally affordable in most parts of the world." "With household formations expected to pick up and new home completions gaining more slowly, for-sale inventories may remain tight and vacancies low."
Decreasing Affordability
Not everyone foresees an improvement in home price affordability for 2014 though. Even if prices do not accelerate as quickly as they did in 2013, some believe that inventory will not be able to catch up with demand in the coming year. "We've come off of record high housing affordability conditions in the past year, and are now at a five-year low, but conditions are still the fifth best in the past 40 years. While the median-income family in many areas will still be well positioned to buy a home in 2014, income is barely budging given growth in consumer prices."
Investors Replaced By Repeat Buyers
Analysts at a housing market data website expects investors to take a back seat to primary residence purchases in the coming year. "2013 was the year of the investor, but 2014 will be the year of the repeat home buyer." "Investors buy less as prices rise: higher prices mean that the return on investment falls and there's less room for future price appreciation." He went on to say that repeat buyers will fill in the gap left from retreating investors, because unlike first-time home-buyers, they often have enough for down payments from the current equity in their homes.
In sum, economists see 2014 as year of increasing home sales and a moderate rise in home prices. Inventory will increase but not fast enough. Investors will exit the scene as foreclosures continue to decline and provide fewer distressed and discounted properties on the market. And if the unemployment rate can continue to tick down and incomes can increase more, the housing market will be on solid footing by the end of next year.
Saturday, January 18, 2014
Homes for sale in sell-ready condition:
Homes for sale in sell-ready condition:
After the holidays, we like to clean out the old and welcome the new. If that means shopping around for a new home, then you’ll want to make sure the one you have now is in sell-ready condition.
1. Evaluate your home. It may seem like a no-brainer, but it is the most important step if you are looking to get a good return on your home. Remodeling your kitchen or bathrooms, for example, is a great idea to attract potential buyers and increase the value of your home; but be careful to not go overboard. moderate kitchen remodels can recoup 69% of costs. Excessive ones got back less than 60%. If you’re itching to sell fast, a better plan would be to fix and update the smaller things in your home. This can mean cleaning your tiles, replacing door and cabinet hardware, fixing faucets and other small but impactful parts of the house. These things add up, and going overboard too close to putting your home on the market can be more hassle than help.
2. Think about when you’re selling. In Aruba, we’re lucky enough to have green grass, blue skies and appealing lawns all year-round, but it’s still a good bet to show closer to springtime than directly after the holidays. Even serious buyers may be deterred due to post-holiday frenzy. You can either wait until a few weeks after New Year’s, or hold off showing until spring. The difference is fewer shoppers but more serious ones, versus multiple shoppers and competing with more homes on the market.
3. Be realistic with your pricing, today’s buyers are cautious. Pricing your home too high can deter them from even considering your home, when there are other more realistically-priced options nearby. Save yourself the time and hassle and price right the first time.
4. Make a good impression. Whenever you decide to sell, make sure you and your home are ready. Try to clear your home of any overly-personal style choices or room decorations. They may fit for your family, but potential buyers will have a hard time seeing past these bold arrangements. Clean up and put some things in storage, and make neutral everything you have left. Clean closets with a few linens and hangers are more sellable than ones covered in band posters and full of kids’ laundry. You never get a second first impression, so make sure shoppers are hooked when they walk through the door.
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