 Starting a new year is the perfect time to review finances and set goals. Here are seven financial wellness tips to consider in the new year.
Pay Off High Interest Debt Binging on Black Friday deals or charging gifts to credit may be fun over the holidays, but the expensive credit card bills that show up in January are not. Get your finances in order by making a plan to pay off high-interest debt. Tax-Advantaged Savings Participating in your company’s 401(k) plan or opening an IRA can lower your taxes now and improve your retirement later. If you already have a 401(k), consider increasing your contribution. Consider an FSA If you have predictable health care expenses or plan to spend more in the year to come, a flexible spending account will benefit you by lowering your tax bill. Open an HSA If you have a high-deductible health plan, you’re eligible to open a health savings account. HSAs provide upfront tax breaks, as well as long-term tax-free growth and tax-free withdrawals for allowable health care expenses. Find the Best Interest Rate You work hard for your money, and your money should return the favor. Shop around for a higher interest rate on your savings account. Monitor Your Credit Look over your credit report for errors and review your credit score. Your credit profile will impact the interest rate you pay on loans, and improving your score could save you money. Review Beneficiary Designations If years have passed since you set up your retirement account, your beneficiary designations may be outdated. Marriages, divorces, and other life events impact the choice of beneficiary, so review your documents and make sure everything is current.
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 Phishing remains one of the most significant cyber threats and hits everyone from individuals to Google and Facebook. It’s common because it’s lucrative; in 2020, it cost individuals and businesses about $4.2 billion. Most phishing attacks are aimed at massive numbers of emails with the hope of catching a few, but a variant, spear phishing, targets specific companies.
So, how can you not get phished? Don’t Click On Links in Unsolicited Emails Emails that claim to come from your bank, PayPal, or another financial provider are suspect. Even if you are completely sure the email does come from that sender, always use an existing bookmark or type in the URL to make sure you are accessing an official website. One of the most common phishing tactics is to pretend to be the victim’s bank in order to get their login credentials and/or credit card number. These emails are often not personalized, while legitimate emails are. Avoid Accepting Friend Requests from Total Strangers Many phishers have switched from email to social media or mobile channels. If you get a message with a link in it, read it carefully before clicking. Make sure the person sending the request is somebody you know and is a legitimate account; look at what they post publicly, etc. Never Send Financial Information via Email Although some legitimate companies, especially in Europe, will ask for your credit card through email, never send it. Call them up instead. Either call them or arrange a specific time for them to call you before handing over the number. Emails Claiming Taxes Are Owed Are Very Suspect Be aware that government agencies and other companies generally don’t use email (or phone) for collections. Most will always send snail mail first. Don’t Use Your Debit Card to Make Online Purchases If a criminal gets your debit card, they have a direct line to your bank account, and it may be difficult to recover the stolen funds. If you want to protect yourself and your money, save your debit card for cash withdrawals and use your credit card for shopping. Credit Cards Provide Protection When Shopping Online Your credit card company will often flag a fraudulent charge and contact you within minutes. You can report the theft immediately and there is generally no risk of loss. Phishing scams and identity theft are problems that are not going away any time soon. Keep an eye on your mail and shred any important documents before throwing them in the trash. Be wary of phone calls and emails asking for personal information, even if they seem to come from a trusted company. Being an educated and proactive consumer is the best way to protect yourself and your finances.  Are you tired of your current living room layout? It’s tempting to splurge on new furnishings, but that is not always practical or necessary. Before heading out to the furniture store, check out these easy ways to revitalize your current setup without spending any money.
Switch Up Your Seating Arrangement One of the simplest ways to change the look of your living space is to rearrange your current seating arrangement. If you have a large living room, consider pulling your couch and chairs inward by at least six inches to create a more inviting and intimate space. If your living room is small, avoid placing seating right up against walls. This can actually make your room appear confined. Instead, pull seating forward by just a few inches. You can also place seating at an angle to create the illusion of a larger space. Add Height to Your Room If you have a bookcase, armoire, or other tall piece of furniture, consider using it in your living room. Tall furniture can be used in corners or against large walls to make your ceiling appear higher. This trick instantly adds height to any room and is also practical. You can store decorative items on bookcase shelves to tie the room together or fill them with cubbies for a chic storage solution. Repurpose Old Furniture Most people have a piece of furniture that they just don’t know what to do with. It never seems to look right in any room and often times winds up in the garage collecting dust. If you can relate to this, it may be time to give that piece of furniture a new purpose. There are many creative ways to repurpose furniture. For starters, you can paint it to give it a fresh look. For tall or bulky furniture, consider painting it the same color as the walls in your home. This trick is used by interior designers to instantly create a more uniform look that is easier on the eyes. Another way to breathe new life into furniture is to remove unnecessary components. This trick works especially well on furniture with doors. By removing these dispensable parts, you can turn your piece of furniture into something new, such as a modern storage cubby or plant stand. Get Rid of Clutter Clutter not only gets in the way but also can make you feel more irritable. If your living room has become more like a dumping ground, getting rid of the clutter may be the change you need. Clutter is distracting to the eye and can ruin the look of any interior design.  Hosting the family meal for Thanksgiving this year? Bring your home to life with these easy, nature-inspired decor tips that will create a warm and festive atmosphere along with the food. Nature-Inspired Decor The bounty we find outdoors should be on display to inspire a grateful attitude for the simple joys of life. Get the children involved in gathering and decorating with nature to round out the tradition. Use colorful leaves as place cards and use a paint pen to inscribe names. Paint acorns with acrylic craft paint and place them in tall glass vases complete with a candle nestled on top. Acorns can also be painted gold to create an elegant setting. Nuts, popcorn, and dried beans make great natural materials as a base in glass vases, which can hold candles, bare branches, or dried flower and grass arrangements. Natural materials blend well with most color palettes and go the extra mile by providing texture. Plus, they’re inexpensive. Formal and Festive If you don’t own a set of fine china, here’s one little trick to make your table look formal and festive: Stack the plates. Find an inexpensive set of white dinner plates and top them with salad plates in a rich color or with an embellished edging. Add linen napkins and a row of pillar candles in different heights in a monochromatic color scheme. Decor to Dazzle Your Guests A combination of natural decor elements can make a big statement. Choose plants, flowers, and fruit you can mix and match. Fresh or dried hydrangeas, plums, blushing artichokes, green and white pumpkins, and gourds make beautiful autumn arrangements. Or, make a “Thankful Tree” with a large tree branch anchored in a vase or pail. Use a red twig dogwood, twisted willow, or Harry Lauder’s Walking Stick branches, then decorate the branches with photos of loved ones or handwritten paper with grateful sentiments. Guests can  When you accept a buyer’s offer, your real estate transaction enters escrow—the period between contract and closing. During escrow, a neutral stakeholder holds the buyer’s cash and the seller’s deed while the buyer and seller fulfill the conditions of the contract. When the contract contingencies are satisfied, the mortgage is in place, and the title is certified, the escrow agent will date the deed, send the purchase money to the seller, and close the sale. This usually takes around 30 to 40 days.
While most escrows are trouble-free, around one in five will experience setbacks. Here’s how to ensure yours stays on track and your home sale closes. 1. Eliminate Repair Surprises Most home sale contracts contain a home inspection contingency that gives the buyer 10-15 days to have the home inspected. Depending on the terms of the contract, if the buyers are not satisfied with the inspection results, they can cancel the contract or try to negotiate a discounted selling price. Taking the preemptive action to get a seller’s pre-inspection means that you can fix the problems upfront that could delay the escrow closing later. 2. Screen the Buyer While there are unpreventable circumstances—such as a sudden job loss—that could delay or stop a buyer’s financing, most issues can be prevented by thoroughly screening the buyer. Ask your agent to call the buyer’s mortgage provider directly to verify their preapproval documents and confirm that the lender has reviewed the buyer’s credit reports. The buyer should be able to prove that they have the necessary funds for the down payment so they don’t come up short at closing. 3. Review the Title Title problems are very unusual with newer homes. Problems typically occur with homes that have been in the family for several generations. If you are selling such a home, it’s worth hiring a title company to review the title. Title problems can take many months to resolve, often requiring a fresh deed or even a court order to correct. If you leave the title problems until escrow, there is a chance that you could lose your sale. 4. Double-Check Every Document Document problems, such as misspelled names or an incorrect loan amount, can cause serious delays, as the documents have to be redrafted, reprinted, and re-signed. Ask to see every piece of paperwork as far in advance as you can. Pay particular attention to numbers, prices, down payment amounts, and personal information. 5. Move Out Carefully Right before closing, the buyer will conduct a final walk-through to make sure the home is in a reasonable condition. Leaving piles of trash in the kitchen or gouging a hole in the wall as you remove the furniture is a surefire way of extending escrow, as the buyer will expect these problems to be fixed before closing. Don’t wait until the last minute to sort out any issues. Get them resolved beforehand so you can be on your way to a stress-free, straight-sailing escrow.  Buying a fixer-upper may seem appealing since the price point is usually much less than a newly remodeled home—and you can remodel it into your dream home. But sometimes the cost of repairs outweighs the initial savings, and fixing the home requires much more work than anticipated. Before buying a fixer-upper consider these points:
Do You Have the Skill? Many people buy a fixer-upper with the intention to renovate it themselves. Unfortunately, most find that they are not as skilled as they imagined. If you are not an experienced DIYer, you may need to hire a professional to get good results. Do You Have the Patience? There are drawbacks during the remodeling process, especially if you plan to move in immediately. Dust, noise, and unfinished rooms can make the living space uncomfortable. If you work from home, expect frequent interruptions by contractors and power tools. You may need to go without your kitchen or a bathroom while they’re being finished. Can You Wait to Move In? When most people buy a home, they want to move in as quickly as possible—perhaps they’ve just sold their previous home or their lease is about to expire. But major repairs can mean waiting weeks or months to move into a house. If you are able to wait an extra month or two while renovations are being made, then buying a fixer-upper won’t be too inconvenient for you. Can You Afford Repairs? Renovating a home can be expensive. Weigh the amount of money you’ll spend on labor and materials versus the return on investment. Remember, remodeling projects often go over budget. After you have calculated the costs of the renovations, add 20% more to make sure it’s in your price range Will It Increase the Value? Houses that need major fixes might not be worth renovating. If something essential such as plumbing needs to be replaced, it won’t necessarily increase the home’s value. Remember, too many improvements can mean you won’t get back the money you invested. Always plan your renovations according to the price of other homes in the neighborhood. If you are experienced with remodeling or can afford to pay professionals, buying a fixer-upper can be a good investment. But if you dislike dust and noise and need to move in immediately, then a turnkey home is a better option.  When it comes to getting a home loan, three of the most dreaded letters are PMI. Those three seemingly harmless letters stand for private mortgage insurance, and borrowers have been conditioned to be wary of it.
PMI is a lender’s way of reducing its risk on mortgages that are secured with less than a 20% down payment. The cost is an annual premium that’s typically 0.5% to 1% of the entire loan amount on an annual basis. PMI has become something homebuyers mostly try to avoid because they’ve been told that having it is like throwing money away each month. Consider these points. PMI Gives More People the Opportunity to Be Homeowners Putting down a large down payment does save money on interest over time, but most buyers will not be able to put down 20% on a home, especially since home prices keep rising. PMI gives buyers who don’t have a large chunk of cash savings a way to get a mortgage and start gaining equity in their home. PMI Can Be Canceled When Your Home Equity Is Over 20% PMI can be canceled when the borrower has 80% equity in the home, the way they would have if 20% had been put down. However, PMI is not automatically canceled, and the buyer should be aware that they’ll need to write their lender a letter requesting cancellation. Can You Afford PMI? Lenders typically require that a borrower’s monthly debts not exceed 33% of monthly income. If the added cost of PMI pushes you over your monthly budget, you’ll need to shop for a less expensive home or postpone homebuying until your financial situation improves. Affordability is a fair objection to PMI, since it adds a monthly expense to a homebuyer’s budget. But as long as the borrower can afford it—and remembers to cancel it when they get to 80% equity—then PMI is a good tool to help more buyers become homeowners.  As the buyer, you should pay close attention during the closing process. A home purchase can fall through because the buyer’s financing does not get approved, the home appraisal comes in lower than expected, there are major home inspection problems, or in rare cases, there are problems with the seller’s title and ownership. Don’t miss these six tips:
The Abstract of Title or Title Insurance Binder This document gives you the entire ownership history of the home and it’s a good idea to at least read the Requirements and Exceptions items. In order for the binder of title insurance coverage to issue a policy, the title insurer will have some requirements, such as a seller’s ex-spouse providing a quitclaim deed to relinquish any possible future claims, or for payoff of the current seller mortgage and any liens against the property. The Homeowner Association Documents These are usually delivered as a part of the title insurance binder documents but could also be available separately. Carefully read the restrictions the HOA enforces. For example, if you love the double-wide parking area in your future home’s driveway and envision parking your covered boat there, you don’t want to move in only to find out that the HOA prohibits this kind of vehicle parking. Read the Inspection Report The single most common reason for failure to close is the inspection report and major defects discovered. Read it carefully, and even if you are okay with the issues, you can negotiate for pre-closing repairs or, in some cases, money for agreeing to fix them yourself after closing. Look at Mechanic’s Liens These will show up in the title documents and will be paid off out of seller funds at closing, but pay attention to the lienholders. You have the inspection report and the seller disclosure of known defects in the home. If there are liens for basement repairs or roof repairs, make sure these are documented in the seller’s disclosure. If those repairs are not listed in the disclosure, could the seller be hiding other problems? Consider an inspection for mold activity. Don’t Lock In Your Interest Rate Too Soon You shouldn’t lock in your interest rate before your mortgage has been approved. Should there be problems with the mortgage, the time to resolve them could result in your interest rate expiring before closing. Pay Attention to Due Dates and Other Seller Requirements In the rare case that you as a buyer want to exit a deal for any reason, you can use the seller’s failure to fulfill required contingencies or deliver documents by their due dates to back out of the deal and not forfeit your earnest money.  A water-efficient landscape reduces outdoor water usage and saves you money on your water bill. Here are some ways to create and nurture a water-conserving landscape.
Don’t Waste Water Watering your plants and trees in the cooler hours of the morning helps them retain water and lose less of it to evaporation. Avoid watering at the end of the day as wet leaves on plants and trees can lead to mildew and fungus. Soaker hoses use 50% less water than sprinklers. You can lay soaker hoses in your garden bed and leave them there all season. Use Native Plants Growing native plants lowers your water usage because they’ve had generations to acclimate to the local soil, climate, and rainfall. Learn which plants and trees are native to your area by visiting a local botanical garden or gardening association. You can also research online and consult local gardening business owners to find the best native plants for your landscaping needs. Think About Plant Size Before placing larger plants in your yard, find out how tall and wide the shrubs and trees grow, their water requirements, and sunlight needs. Don’t overcrowd your plantings, as this will require additional water. Instead, remember that sparse initial plantings will fill in as they grow and mature. Mulch Correctly Placing mulch around plants and trees helps reduce water loss while combating weeds that can steal water from your greenery. Buy bark mulch from the store or use organic mulches such as pine needles, grass clippings, or ground-up leaves, which help add nutrients to the soil in your garden. Use Porous Path Material When you make your garden paths out of porous materials such as pebbles, gravel, spaced bricks, or pavers without mortar, water can reach the ground and nourish plant roots. Using nonporous materials such as concrete creates water runoff that can cause erosion. To prevent weed growth through porous path materials, lay down a layer of landscaping paper before adding the pebbles or gravel.  A homeowner’s association (HOA) is a private organization that oversees a group of homes in a community, common in condominiums, town houses, and master-planned subdivisions. The HOA is managed by a board of directors elected by the community’s residents, and anyone who buys a home in an HOA neighborhood is required to become a member and abide by the organization’s rules. Here’s what an HOA does for you:
Protects Home Values HOAs enforce specific rules designed to maintain uniformity and uphold neighborhood appearances. For example, some HOAs prohibit residents from parking broken-down vehicles on front lawns, letting their grass grow too tall, or building unsightly attractions. An HOA may also enforce noise restrictions and curfews. Well-maintained and safe neighborhoods are more likely to draw in potential buyers. Provides a Sense of Community Forming an HOA fosters a greater sense of community among the residents. Neighbors have the opportunity to meet one another when using their shared amenities, attending HOA meetings, or participating in organized social events such as block parties. Maintains Common Areas and Funds Amenities The homeowner’s association is responsible for maintaining the neighborhood’s common landscaping areas, which sometimes means planting trees and mowing the lawn in front of each home. Many HOAs also feature perks like community swimming pools, playgrounds, or tennis courts, all maintained and funded by the HOA. Enforces Rules and Restrictions With some stricter HOAs, you may need approval to make changes to your home’s exterior—even minor ones such as what color you can paint your door or how high a fence can be. There may also be restrictions on renting out your home or a limit on how many people can live there. Violating HOA rules could result in hefty fines. Determines Costs of Benefits Living in a community with an HOA has advantages, but you will need to pay HOA fees on a monthly or yearly basis. Generally, the more special features the neighborhood has, the higher the HOA costs will be. Living in a community with an HOA can be a great option for homeowners. However, it’s not the right choice for everyone. Consider the benefits and drawbacks of an HOA as you look for your new home. |
AuthorsA variety of real estate related references and pertinent information by various contributors. Get the latest real estate news and helpful tips regularly. |
Avant Properties
1350 Old Bayshore Hwy Suite 520
Burlingame Ca 94010
Main Tel. (650)796-5565
Burbank Office at (818)653-5358
Email: [email protected]
DRE #01352623
1350 Old Bayshore Hwy Suite 520
Burlingame Ca 94010
Main Tel. (650)796-5565
Burbank Office at (818)653-5358
Email: [email protected]
DRE #01352623