There are a ton of people out there talking about whether people should buy or rent, which neighborhoods are good and which are bad, and what the best way to pay back a mortgage is.
I'm going to focus on three key tips that I keep in mind when shopping for property, and that have worked to actually save me money.
1. Use your social network
Some of the best tips on new property listings, realtors that charge lower to no fees, and self-advertised properties are available from people in the area. Letting people around you know that you are looking for a place and what is important to you can really magnify your access to opportunities. Be sure to investigate each of your recommendations, however. Even if you really like the person that is recommending the place to you, it could be right next door to a dog-fighting kennel.
2. Hire your own inspectors
In the modern age, it's necessary to have an appraisal prior to closing, but not all appraisals are created equal. For many banks and contracting agencies, it's too much work to do an interior inspection, and many important details or deficits can be missed. Paying a couple of hundred dollars for a home inspection is peanuts compared to getting thousands of dollars off of your sales price when you find issues that need to be addressed, or having to pay thousands over market for a structure with hidden damage.
3. Don't be afraid to walk away.
I have looked into properties in many different price ranges, starting at $4000 tax sale homes and topping out in the several hundreds of thousands of dollars, and the most important rule that I have had going into every deal is that I wanted a house, but I didn't need "that" house. While it is easy to get emotional, and attached to a particular property, it's better to remain impartial and evaluate the facts of the market and the property. A cute paint scheme, a nice neighborhood, and a convenient floorplan pales in comparison to a home in your price range and a stable city government.
Best of luck to all of you out there looking at buying a home!
Do you have any experience using these tips?
Do you have any advice for other people considering a home purchase?
Share them in the comments below!
Thursday, June 22, 2017
Monday, June 12, 2017
Keep Cooking For Yourself, No Matter Where you are or what's going on in your house
Being able to cook for yourself unlocks a world of savings.
Eating away from home and paying other people to turn groceries into dishes is a fantastic way to spend more money than you really need to, and you don't necessarily need a lot of equipment to prepare food.
I've made fine dishes with only access to a microwave, refrigerator, and a set of dishes, but a camp stove or grill are great additions to makeshift kitchens.
Personally, as long as I have a way to make rice and cook meat, beans and vegetables I am happy, but I can also achieve massive savings over restaurant food by buying lunchmeats and bread at the deli counter and making sandwiches at home. I've gone the sandwich route twice in my life, and both times I thoroughly enjoyed the change of pace from my normal spoon and bowl cuisine to something that I could eat with my hands.
If you want to go the sandwich route, I recommend making a whole loaf of bread's worth of sandwiches at once and storing the individual portions in plastic wrap either under refrigeration or in the freezer.
The savings in this activity are considerable. Many people can easily spend 100 dollars per week eating cheap takeout, and if eating out for every meal are tempted to eat fast food or pre-prepared food from grocery stores and cafes. I have even observed 40 and 50 dollars per day of expenses on food alone! Making your own food is an easy way to save 1 or 2 thirds of this cost.
Eating away from home and paying other people to turn groceries into dishes is a fantastic way to spend more money than you really need to, and you don't necessarily need a lot of equipment to prepare food.
I've made fine dishes with only access to a microwave, refrigerator, and a set of dishes, but a camp stove or grill are great additions to makeshift kitchens.
Personally, as long as I have a way to make rice and cook meat, beans and vegetables I am happy, but I can also achieve massive savings over restaurant food by buying lunchmeats and bread at the deli counter and making sandwiches at home. I've gone the sandwich route twice in my life, and both times I thoroughly enjoyed the change of pace from my normal spoon and bowl cuisine to something that I could eat with my hands.
If you want to go the sandwich route, I recommend making a whole loaf of bread's worth of sandwiches at once and storing the individual portions in plastic wrap either under refrigeration or in the freezer.
The savings in this activity are considerable. Many people can easily spend 100 dollars per week eating cheap takeout, and if eating out for every meal are tempted to eat fast food or pre-prepared food from grocery stores and cafes. I have even observed 40 and 50 dollars per day of expenses on food alone! Making your own food is an easy way to save 1 or 2 thirds of this cost.
Cheap costs for Cheap Cars
This has been an expensive last few months for me.
Back in January, I made the call to purchase a cheap car for about 1600 dollars, a 2000 Mazda 626 sedan. It had pretty high mileage, and a possible motor mount issue resulting in a vibration at idle.
I didn't really need to do much to get the car in good condition, as it was running when I purchased the vehicle.
I paid for an oil change at a local superstore, and had the techs take a look for any unusual mechanical issues. That cost about 50 dollars for a multi-point inspection.
I also paid for a complete brake overhaul, so I had new front brake pads installed, my rotors resurfaced, and rear brake drums replaced for a grand total of 450 dollars. That was back in March.
This June I've decided to spring for a new set of tires, which were pretty reasonable at 50 dollars per tire. I bought four tires, and with installation, taxes and fees I spent 250 dollars overall.
At this point, I've spent 1600+50+450+250 on my cheap car in terms of parts and service, for a total of 2350 dollars on the car. I also paid 180 dollars for 6 months of insurance, and 200 dollars in licensing and registration fees. If I want to include the costs of gasoline, that is an extra 100 dollars monthly, for 500 dollars in gasoline. So far this year, therefore, that would be 2350+180+200+500 for 3230 dollars in transportation costs. Over six months, that works out to be 538 dollars per month, which is pretty hefty! I hope that my car will be a bit cheaper going forward, and my costs more closely approximate the costs of gasoline and insurance as opposed to brakes, tires and registration.
At the same time, I realize that the same costs that I faced on my cheap car come up on more expensive vehicles. 450 dollars of brake work on my car would easily be 1000 dollars of brake work for a luxury German vehicle, and 250 dollars would be the cost of a single tire on a luxury sedan, not a set of four on my Mazda. My insurance works out to be about 30 dollars per month, which would be unheard of if I was driving a luxury vehicle, and I'm comfortable carrying liability only coverage since I could walk away from the vehicle if necessary.
All in all, it could be much worse, and I'm still comfortably able to afford the 626, even if the costs have been higher than anticipated so far this year. I've still got 6 months left to go in the year, and if I only have to pay gas, insurance and possibly an additional oil change my average transportation expenditure should approach 150 dollars monthly.
Back in January, I made the call to purchase a cheap car for about 1600 dollars, a 2000 Mazda 626 sedan. It had pretty high mileage, and a possible motor mount issue resulting in a vibration at idle.
I didn't really need to do much to get the car in good condition, as it was running when I purchased the vehicle.
I paid for an oil change at a local superstore, and had the techs take a look for any unusual mechanical issues. That cost about 50 dollars for a multi-point inspection.
I also paid for a complete brake overhaul, so I had new front brake pads installed, my rotors resurfaced, and rear brake drums replaced for a grand total of 450 dollars. That was back in March.
This June I've decided to spring for a new set of tires, which were pretty reasonable at 50 dollars per tire. I bought four tires, and with installation, taxes and fees I spent 250 dollars overall.
At this point, I've spent 1600+50+450+250 on my cheap car in terms of parts and service, for a total of 2350 dollars on the car. I also paid 180 dollars for 6 months of insurance, and 200 dollars in licensing and registration fees. If I want to include the costs of gasoline, that is an extra 100 dollars monthly, for 500 dollars in gasoline. So far this year, therefore, that would be 2350+180+200+500 for 3230 dollars in transportation costs. Over six months, that works out to be 538 dollars per month, which is pretty hefty! I hope that my car will be a bit cheaper going forward, and my costs more closely approximate the costs of gasoline and insurance as opposed to brakes, tires and registration.
At the same time, I realize that the same costs that I faced on my cheap car come up on more expensive vehicles. 450 dollars of brake work on my car would easily be 1000 dollars of brake work for a luxury German vehicle, and 250 dollars would be the cost of a single tire on a luxury sedan, not a set of four on my Mazda. My insurance works out to be about 30 dollars per month, which would be unheard of if I was driving a luxury vehicle, and I'm comfortable carrying liability only coverage since I could walk away from the vehicle if necessary.
All in all, it could be much worse, and I'm still comfortably able to afford the 626, even if the costs have been higher than anticipated so far this year. I've still got 6 months left to go in the year, and if I only have to pay gas, insurance and possibly an additional oil change my average transportation expenditure should approach 150 dollars monthly.
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