I did some research on what kind of calculations would help a person decide whether to rent or buy a home. People need to move for many reasons for example: career changes, educational pursuits, proximity to family. All of these are perfect reasons why a person might switch area codes and the next question depending on your finances is if one should rent or buy? Obviously most of you think that if you have the money and your finances are in order that the reasonable thing would be to buy, but the smart thing to do is to research first. I have listed two tests below to guide you:
Step One: Pull several multiple listing statistics from the local Realtor on the specific town.
Step Two: Find out the average annual appreciation over the past ten years for the town
Step Three: Find the average days on market in the town.
For example, if the houses are going up 3% a year and it takes them 6 months to sell, you probably don’t want to buy in that area because you’ll probably lose money and have a hard time selling. Therefore you will only consider renting if you had to move to that town. If house values go up 15% a year and sell in a couple weeks, then you should buy because you will make money in about four years of living in the area.
-Multiply expected annual rent times 15
-If purchase price is more than the 15 X rent expense- Rent
-If purchase price of home is less than 15 X rent expense – Buy
Consider what is the average rent for the town as well as what the median purchase prices are for homes in the town. The test most real estate experts use is if the house is 15 times more than the annual rent then renting is more economical.
Now you have two approaches to apply before you take the major step of buying or renting in a specific city or town. Obviously there are many other variables to consider but now you are a step closer to deciding if it’s right to become a home owner in a town you may not know anything about.
Saving $$$ in real estate is another way to watch your money.
Since the crazy shopping frenzy is now officially over and most of us are still happy over all the cool gifts we got this year. I wanted to share with you all the top ten holiday gifts of 2011. I am only doing this post as an informative way to share with you this cool list and hopefully some of your gifts will be present here. This list was taken by the sales purchases of major retailers leading up to Christmas eve.
I really feel that this year the cash registers broke major records due to the large number of crowds to hit the stores this year. Which is a good sign for the economy as consumer spending is 70% of the GDP. The true test will be revealed as retailers will eventually release official numbers in the coming weeks to the media.
Top 10 Product Categories:
-DVD/ Blu-Ray Movies
-Tickets to events
I know most of you reading this list received at least one of these list categories as a gift. I got some cool clothes that I can use in the new year. What did you guys get? Comment back to let us know.
The link listed here is the top items for Amazon.com the most popular online retailer. http://money.cnn.com/2011/12/29/technology/amazon_holiday_sales/index.htm?iid=HP_LN
The Top Items for Amazon.com as per the link above:
-Tablet- Kindle Fire
-Books- Steve Jobs Biography
-Clothing- Levi Jeans
-Shoes- Ugg Boots
-Video Game- Just Dance 3
-Movie- Harry Potter Deathly Hallows 2
-CD- Michael Buble’s Christmas
-Kids Toys- Rory Story Cubes
-Baby Toys- Baby Einstein Tunes
-Cell Phone- Droid Razr
OK so there you have it one list is a generic top ten of items while the second list is a record of amazon’s online top ten purchased categories. Just an informative way to share with you what was purchased this year. Also in the future before purchasing any item online or at a store, compare the same item with amazon because 9 out of 10 times the item will be less expensive at amazon.
After this holiday season we all watched our money fly into the cash registers. HaHaHa.
Ok now that we have gotten through a great christmas weekend I can only start thinking of the New Year and what that will bring to an already crazy life. I want to complete as many goals as possible in 2012 and I hope all of you have the same aspirations for your lives. I will share my goals in this post and I want all of you to please comment back and share at least one goal with us here at moneywatch101.
I found a cool article that lists the top ten most forgotten resolutions. I found this to be very interesting and it got me thinking, why do people commit to something and not follow through. Some of the reasons could be procrastination, laziness, or just a lost of interest. I think if we write our goals/resolutions down on paper and put it up on the refrigerator door that we all will be more inclined to follow through.
The Top ten Resolutions are :
1. Lose Weight
2. Quit Smoking
3. Learn Something New
4. Eat Healthier/Diet
5. Get Out of Debt/Save Money
6. Spend Time with Family
7. Travel to New Places
8. Be Less Stressed
10. Drink Less
This list was featured in Time.com and will probably be 2012 top ten failed resolutions as well. Here is the link for the full article, http://www.time.com/time/specials/packages/article/0,28804,2040218_2040220_2040221,00.html
Hey Friends I want to ask you a simple question today, What’s your passion? I saw a movie recently about someone finding their purpose in life. This is a true story of a man who had a passion for practicing Kung Fu everyday, but never wanted to teach it to others. He used it only as a form of self-defense. The movie I am referring to is called IP Man and its a great story of a man who found his passion. I wonder what’s your passion?
What’s your Passion
I believe that if you have a high level skill and or gift why not teach it to individuals. It will bring happiness to your life that you never imagined and joy to others. If you do not take the first step in showing others your talent/gift then you may not realize the possibilities of achieving greatness.
The IP man was a Kung Fu expert who did not decide to teach others until his country experienced great adversity in times of war. His recognition to martial arts will never be forgotten as he was Bruce Lee’s master in the art of Kung Fu. So do not waste any time and find your passion so that one day you can do what you love to do. After you finally decide to share your gift with others it will be entirely up to you if it will be a free service or paid for service. It’s a win win if your everyday job involves your purpose and passion in life. Then you will not dread waking up in the morning while forcing yourself to go to job that you do not find joyful.
-One of my passions that I can talk about for hours is Personal Finance and the moneywatch101 website gives me the opportunity to share it with others. It’s funny that one of my passions involves money, but that’s life. What passion do you have hidden that is eagerly waiting to be released? I trust if you begin to find ways to share it with the world you will be a happier person in life.
Resources to help you find your Passion:
Passion + Time = Happiness
Another reason given the right situation how one can find passion in life.
After reading the Find your passion in 3 steps post I wanted to share with you my 3 favorite movies below.
Saving Private Ryan
Money and Passion can be combined effectively and I hope you can find it sooner rather than later.
Rich Uncle EL
I am interested to see if all of you have a hidden passion that you do not want to share with the world. Many people enjoy doing something on a daily basis but would rather keep it hidden and not attempt to put it out there for whatever reason. That is the worst thing you can do as this passion can and will probably define you in some way or another.
This will be a short post to get the innovative juices flowing inside all of your minds to not only think about your passion, but to also share it with the world. In part two of this post I will release why I want you all to share this with the world.