Finance Xpress

Looking for ways to save this back-to-school season? Mark your calendars! Here is the latest sales tax holiday schedule.

Each year, several states in the U.S. have a sales tax holiday weekend–or sometimes a whole week! Some states offer two or three different sales tax holidays over the year, often focused on different types of items. Sales tax holidays are an especially big hit around back-to-school season. They are a great way to save as you stock up on school supplies or outfit your kids for the coming school year.

Back-to-school offer – The Chase College Checking℠ account provides students a checking account with a wide variety of tools to manage their day to day finances. Students have access to 16,000 ATM’s and over 5,100 Chase branches along with Chase QuickDeposit, the Chase Mobile App and a VISA® debit card. For a limited time, new students can earn a $100 bonus by signing up, depositing $25, enrolling in paperless statements and making 10 qualifying transactions inside of the first 60 days.

This schedule gives you the latest information on the states offering back-to-school sales tax holidays.

State	2019 Dates
Arkansas	8/3 - 8/4
Connecticut	8/18 - 8/24
Florida	8/2 - 8/6
Iowa	8/2 - 8/3
Maryland	8/11 - 8/17
Massachusetts	8/17 - 8/18
Mississippi	7/26 - 7/27
Missouri	8/2 - 8/4
New Mexico	8/2 - 8/4
Ohio	8/2 - 8/4
Oklahoma	8/2 - 8/4
South Carolina	8/2 - 8/4
Tennessee	7/26 - 7/28
Texas	8/9 - 8/11
Virginia	8/2 - 8/4

Topics: Taxes

The post 2019 Sales Tax Holiday Schedule by State appeared first on The Dough Roller.

via Finance Xpress

Posted by: Adam McCann

If you’re among the millions of HGTV viewers who’ve seen an episode of “Flip or Flop,” you’ve probably thought about the thrill of gutting a house and turning a five- or six-figure profit. But the process isn’t as easy as the professionals on television make it look. Any experienced home flipper would caution you that transforming a fixer-upper into a profitable property is a difficult process.

In other words, don’t get your hands dirty until you’ve learned a thing or two about real estate, construction and how much damage your project could do to your wallet. Breathing new life into a low-cost property won’t necessarily return your full investment and allow you to pocket another $60,000, the average gross flipping profit in Q1 2019. According to RealtyTrac, though, the current homeownership rate is 64.2 percent (down from a high of 69.20 percent in 2004). That may translate to fewer potential buyers off the bat, depending on the location of your property.

To help you choose the right market to list your masterpiece, WalletHub compared more than 170 U.S. cities across 29 key indicators of market potential, cost and quality of life. Our data set ranges from median purchase price to average full home remodeling costs to housing-market health index. Read on for the winners, expert home-flipping advice and a full description of our methodology.

1. Main Findings
2. Ask the Experts
3. Methodology

Main Findings

Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/23158/geochart.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2Oxj2wm>  

Best & Worst Cities to Flip Houses

Overall Rank (1 = Best)	City	Total Score	‘Market Potential’ Rank	‘Renovation & Remodeling Costs’ Rank	‘Quality of Life’ Rank
1	Sioux Falls, SD	72.69	78	9	26
2	Missoula, MT	72.05	2	34	23
3	Rapid City, SD	67.67	62	11	96
4	Billings, MT	67.17	5	30	79
5	Peoria, AZ	67.17	88	7	11
6	Tampa, FL	66.63	21	25	42
7	Fort Smith, AR	65.98	133	1	131
8	Greensboro, NC	65.84	14	12	97
9	Las Cruces, NM	65.58	119	6	129
10	Boise, ID	65.40	135	8	19
11	Henderson, NV	65.28	58	41	12
12	Columbia, SC	65.11	8	14	122
13	Mobile, AL	65.02	1	23	158
14	Gilbert, AZ	64.54	73	69	2
15	Knoxville, TN	64.54	11	13	123
16	Fort Wayne, IN	64.00	23	19	105
17	Chandler, AZ	63.89	65	47	14
18	Charleston, SC	63.76	26	66	18
19	Overland Park, KS	63.24	86	82	1
20	Nampa, ID	62.90	159	2	67
21	Little Rock, AR	62.86	36	5	135
22	Laredo, TX	62.86	169	40	69
23	Des Moines, IA	62.63	95	4	84
24	Oklahoma City, OK	62.59	47	18	90
25	Cape Coral, FL	62.57	27	78	15
26	Nashville, TN	62.34	66	16	76
27	Pembroke Pines, FL	62.04	50	72	13
28	Las Vegas, NV	61.99	46	33	61
29	Orlando, FL	61.52	49	29	78
30	Jackson, MS	61.03	127	3	168
31	Virginia Beach, VA	60.91	43	79	20
32	El Paso, TX	60.50	149	17	65
33	Spokane, WA	60.41	12	54	126
34	Tempe, AZ	60.35	48	55	57
35	Glendale, AZ	60.34	74	20	108
36	Colorado Springs, CO	60.32	81	49	41
37	Shreveport, LA	60.24	6	10	170
38	Grand Rapids, MI	60.02	106	37	37
39	Phoenix, AZ	59.98	79	26	91
40	Huntsville, AL	59.91	20	58	109
41	Tallahassee, FL	59.80	40	39	112
42	Lincoln, NE	59.62	94	53	31
43	Columbus, OH	59.53	42	61	72
44	Raleigh, NC	59.37	103	52	25
45	North Las Vegas, NV	59.10	61	36	103
46	Cedar Rapids, IA	58.82	93	32	100
47	Montgomery, AL	58.73	16	28	159
48	Scottsdale, AZ	58.66	71	113	5
49	West Valley City, UT	58.58	120	31	86
50	Jacksonville, FL	58.46	29	74	92
51	Tulsa, OK	58.38	56	22	143
52	Lexington-Fayette, KY	58.28	52	83	80
53	Reno, NV	58.11	99	68	27
54	Durham, NC	58.08	33	77	81
55	Charleston, WV	57.97	90	51	134
56	Austin, TX	57.81	157	80	17
57	Tucson, AZ	57.77	69	21	141
58	Akron, OH	57.58	22	56	145
59	San Antonio, TX	57.56	144	27	98
60	Salem, OR	57.53	37	87	49
61	Denver, CO	57.53	112	67	29
62	Mesa, AZ	57.50	80	81	39
63	Winston-Salem, NC	57.47	35	59	127
64	Charlotte, NC	56.89	55	85	50
65	Plano, TX	56.76	104	118	4
66	Fort Worth, TX	56.72	141	57	47
66	Columbus, GA	56.72	3	70	166
68	Memphis, TN	56.71	4	43	171
69	New Orleans, LA	56.61	45	48	140
70	St. Petersburg, FL	56.52	44	91	60
71	Augusta, GA	56.51	31	46	163
72	Omaha, NE	56.49	92	84	36
73	Modesto, CA	56.18	82	60	102
74	Indianapolis, IN	55.93	57	42	148
75	Salt Lake City, UT	55.69	110	75	51
76	Kansas City, MO	55.64	134	45	113
77	Cincinnati, OH	55.61	24	92	110
78	Columbia, MD	55.59	15	117	58
79	Grand Prairie, TX	55.52	140	71	33
80	Fort Lauderdale, FL	55.50	60	65	121
81	Louisville, KY	55.46	76	62	115
82	Port St. Lucie, FL	55.42	70	99	32
83	Arlington, TX	55.42	136	44	99
84	Springfield, MO	55.32	137	15	154
85	Portland, ME	55.19	32	119	34
86	Buffalo, NY	54.93	10	104	114
87	Baton Rouge, LA	54.91	13	64	162
88	Rancho Cucamonga, CA	54.69	116	106	9
89	Fayetteville, NC	54.57	102	38	161
90	Chesapeake, VA	54.52	75	89	63
91	Hialeah, FL	54.32	53	94	87
92	Birmingham, AL	54.03	7	101	144
93	Aurora, CO	53.86	125	76	66
94	Wichita, KS	53.70	154	24	147
95	Pittsburgh, PA	53.66	34	125	46
96	Corpus Christi, TX	53.33	129	62	130
97	Lubbock, TX	53.27	170	50	117
98	Albuquerque, NM	52.86	165	35	136
99	Miami, FL	52.79	89	98	70
100	Amarillo, TX	52.77	171	100	88
101	Toledo, OH	52.25	39	73	155
102	Sacramento, CA	52.22	122	93	54
103	Richmond, VA	52.12	38	109	116
104	Irvine, CA	51.94	121	143	3
105	Washington, DC	51.58	77	115	75
106	Tacoma, WA	51.55	41	97	139
107	Norfolk, VA	51.10	63	90	132
108	St. Paul, MN	51.05	107	108	52
109	Garland, TX	50.47	147	96	82
110	Warwick, RI	50.46	84	121	53
111	Santa Clarita, CA	50.19	164	128	8
112	Chattanooga, TN	49.66	17	134	125
113	Madison, WI	49.49	160	120	24
114	Baltimore, MD	49.43	18	103	164
115	Cleveland, OH	49.08	18	107	165
116	Huntington, WV	48.89	91	88	160
117	Seattle, WA	48.85	83	150	22
118	Philadelphia, PA	48.82	30	130	133
119	Anchorage, AK	48.73	166	105	128
120	Fresno, CA	48.68	85	116	119
121	Vancouver, WA	48.47	64	129	104
122	Ontario, CA	48.44	123	112	85
123	Riverside, CA	48.41	130	122	64
124	Rochester, NY	48.23	67	95	157
125	Irving, TX	48.08	148	123	59
126	Minneapolis, MN	47.74	101	135	62
127	Newport News, VA	47.64	59	114	149
128	Milwaukee, WI	47.60	54	111	151
129	Detroit, MI	47.55	51	86	169
130	San Diego, CA	47.23	138	146	16
131	Portland, OR	46.77	108	144	44
132	Garden Grove, CA	46.69	158	132	35
133	Dallas, TX	46.51	126	131	93
134	Chula Vista, CA	46.31	139	145	30
135	Dover, DE	45.86	109	139	77
136	Oceanside, CA	45.78	132	141	45
137	Fontana, CA	45.73	152	138	48
138	Huntington Beach, CA	45.70	145	158	7
139	Nashua, NH	45.55	114	142	56
140	Providence, RI	45.30	97	110	152
141	Manchester, NH	45.29	115	126	124
142	Anaheim, CA	45.10	156	136	71
143	Stockton, CA	45.03	87	124	146
144	Houston, TX	44.85	168	102	138
145	Atlanta, GA	44.58	28	162	95
146	Honolulu, HI	44.23	143	155	38
147	Moreno Valley, CA	44.11	131	133	107
148	San Jose, CA	44.07	96	167	10
149	Santa Rosa, CA	43.99	98	159	43
150	Glendale, CA	43.99	146	148	40
151	Santa Ana, CA	43.97	161	137	89
152	St. Louis, MO	43.95	25	156	142
153	Long Beach, CA	43.80	155	140	83
154	Bakersfield, CA	43.78	68	149	118
155	Aurora, IL	43.58	128	147	68
156	Pearl City, HI	43.42	100	151	28
157	Fremont, CA	41.87	150	170	6
158	Chicago, IL	41.77	117	152	111
159	Worcester, MA	41.55	72	153	137
160	San Bernardino, CA	41.40	124	127	156
161	Jersey City, NJ	38.58	105	165	73
162	Oxnard, CA	38.56	142	157	120
163	Los Angeles, CA	38.45	163	160	101
164	New York, NY	37.79	113	169	74
165	New Haven, CT	37.47	118	154	153
166	Boston, MA	37.46	151	168	55
167	Wilmington, DE	36.98	9	163	172
168	San Francisco, CA	35.30	167	172	21
169	Oakland, CA	34.64	162	166	106
170	Newark, NJ	33.57	111	164	150
171	Yonkers, NY	33.07	153	171	94
172	Bridgeport, CT	30.33	172	161	167

Ask the Experts

Flipping houses can be a tricky business, especially for novices. For insight on the house-flipping market and advice on choosing a good property, we asked a panel of housing and real-estate experts to weigh in on the following key questions:

1. What are the most common mistakes people make when trying to flip a house?
2. What is the best way to finance a flip? Should people try to go all cash or borrow?
3. What types of people are typically well-suited for engaging in house flipping?
4. What factors — financial and otherwise — should go into the decision of whether a house is a good candidate to be flipped?
5. Is house flipping a contributing factor to the overheating of some real-estate markets? Should this type of business be more regulated?

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• Brittany Kielhurn Owner, CEO at Carolina Community Investments & Professor at Duke University
• Thomas Z. Lys Eric L. Kohler Professor Emeritus, Kellogg School of Management, Northwestern University
• John Sobota Lecturer/Program Director, Golf Enterprise Management (GEM), Hospitality & Tourism, University of Wisconsin-Stout
• Adam D. Nowak Ph.D. – Associate Professor of Economics at West Virginia University

Methodology

In order to determine the best and worst cities to flip houses, WalletHub compared 172 cities — including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state, except for the cases where data limitation existed— across three key dimensions: 1) Market Potential, 2) Renovation & Remodeling Costs and 3) Quality of Life.

We evaluated those dimensions using 29 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for house flipping.

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area.

For context, “home flipping” is a real-estate term for buying a property with the purpose of reselling it for a profit, which is generated through appreciation of the home’s value or repairs and renovations.

Market Potential – Total Points: 35

• Average Gross Return on Investment (ROI): Triple Weight (~6.18 Points)
• Change in Gross ROI of Flipped Homes (2018 vs. 2017): Full Weight (~2.06 Points)
• Median Purchase Price: Full Weight (~2.06 Points)
• Share of Home Flips: Full Weight (~2.06 Points)
• Average Days to Flip: Full Weight (~2.06 Points)
• Home Turnover Rate (2016 vs. 2015): Full Weight (~2.06 Points)Note: This metric specifically measures the change in the number of homes sold in one year.
• Housing-Market Health Index: Full Weight (~2.06 Points)
• Average Ratio of Sale Price to List Price: Full Weight (~2.06 Points)
• Real-Estate Agents per Capita: Full Weight (~2.06 Points)
• Foreclosed Homes per 10,000 Homes: Full Weight (~2.06 Points)
• Mortgage Lenders per Capita: Full Weight (~2.06 Points)
• Real-Estate Tax Rate: Full Weight (~2.06 Points)Note: This metric was calculated as follows: Median Real-Estate Tax / Median House Price.
• Share of Flips Sold to Cash Buyers: Full Weight (~2.06 Points)
• Share of Flips Sold to FHA Buyers: Full Weight (~2.06 Points)
• Median Year Built: Full Weight (~2.06 Points)

Renovation & Remodeling Costs – Total Points: 35

• Average Kitchen Remodeling Costs: Full Weight (~8.75 Points)
• Average Bathroom Remodeling Costs: Full Weight (~8.75 Points)
• Average Full Home Remodeling Costs: Full Weight (~8.75 Points)
• Median Construction-Worker Salary: Full Weight (~8.75 Points)Note: “Construction Worker” includes plumbers, electricians, carpenters, etc.

Quality of Life – Total Points: 30

• Crime Rate: Full Weight (~3.00 Points)
• Perception of Safety (Safety walking alone during daylight/night): Full Weight (~3.00 Points)Note: These data are based on perceptions of visitors of Numbeo website in the past 3 years. If the value is 0, it means it is perceived as very low, and if the value is 100, it means it is perceived as very high.
• K–12 School-System Quality: Full Weight (~3.00 Points)Note: This metric measures the share of public schools rated by GreatSchools.org with above average score.
• Share of Population with Walkable Park Access: Full Weight (~3.00 Points)
• Family-Friendliness: Full Weight (~3.00 Points)Note: This metric is based on WalletHub’s “Best & Worst Cities for Families” ranking.
• Annual Job-Growth Rate: Full Weight (~3.00 Points)
• Unemployment Rate: Full Weight (~3.00 Points)
• Median Salary: Full Weight (~3.00 Points)Note: This metric was adjusted for cost of living.
• Median Credit Score: Full Weight (~3.00 Points)
• Pace of Economic Growth: Full Weight (~3.00 Points)Note: This metric is based on WalletHub’s “Fastest-Growing Cities” ranking.

Videos for News Use:

• YouTube (for web embedding National)
• Raw files (for editing into clips)

 Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Renwood RealtyTrac, Zillow, Houzz, Federal Bureau of Investigation, U.S. Department of Housing and Urban Development, GreatSchools.org, The Trust for Public Land, Council for Community and Economic Research, Numbeo, TransUnion and WalletHub research.

Image: Peshkova / Shutterstock.com

from Wallet HubWallet Hub


via Finance Xpress

Spice up your life with a little variety. Green Chef turns up the heat in meal delivery service by catering to your specific health needs. Keto, paleo, gluten-free, plant-based, pescatarian, lean and clean… whatever your taste, this service is sure to deliver. Read on to find out if this is the right one for you.

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Tired of spending money on eating out but too busy to shop, prep, and cook? Green Chef has the solution. It’s a meal kit delivery that hands you everything you need for delicious, fast, and easy to make meals that will keep you and your family eating well and happy.

How Green Chef Works

Green Chef is an economically-friendly alternative to dining out all the time, even if you’re on a tight schedule. Most people don’t have time to shop for and cook extravagant meals for themselves or their families. But those same people will probably be able to find 30 minutes to throw together a good meal if it’s as easy as that.

Green Chef provides you with all the ingredients you need, the recipes and instructions spelled out clearly, and even prepped sauces, vegetables, sides, and mains. All you have to do is assemble according to the instructions, and you’ll have a hearty meal in no time.

Here’s how it works:

• Sign up for an account with Green Chef
• Pick how many people you are cooking for: 1, 2, 3, or 4
• Choose a plan based on your dietary needs, tastes, or budget
• Enter delivery and payment information
• Choose the meals from your plan’s selection
• Choose a delivery date, and wait for your food to arrive

Green Chef requires no monthly subscription and no commitment. This is nice as it means you can try out the service once, and if you don’t like it, you aren’t stuck with it. Plus, it allows you to keep your menu options fresh, ordering from Green Chef one month, and trying out another service another month. You can even cancel orders anytime within the seven days before your delivery date.

Green Chef earns points for its packaging as well–made from recycled materials you can either reuse, recycle, or compost. Another plus, the meal kits come with color-coded ingredient packets with recipe cards to teach you how to make each meal.

Related: Best Grocery Delivery Services

Green Chef Options

Green Chef has an excellent selection of meal plans catering to just about every type of dietary need or unique foodie penchant. Here are some of the plans available from this meal kit delivery service:

• Keto
• Paleo
• Omnivore
• Plant-powered
• Gluten-free
• Pescatarian
• Heart Smart
• Mediterranean
• Lean & Clean
• Family Plan

What’s more, Green Chef menus change every week with five or six new recipes to choose from. It may not sound like a lot (and it isn’t really), but since you are only planning a menu for a single week, you really don’t need much more of a selection. And since the menus change every week, five per week is sufficient for most people. Plus, if you want more variety, you can always switch to a different plan (i.e., check out what’s cooking on the Keto plan and scout out the Paleo plan).

All of the Green Chef dishes look delicious and taste as good as they look. Some of the dishes you can choose include Cuban steaks with mojo sauce, creamy pesto pasta with sausage, orzo pasta with basil miso sauce, and roasted parmesan Dijon salmon.

Visit Green Chef – Get $75 Off

Related: Best Meal Planning Service

Green Chef Costs

Green Chef’s pricing varies depending on which plan and how often you want to order. For example, the plant-powered plan runs you $11.99 per meal/serving or $78.93 per box. But if you order more boxes per week, that price goes down to $9.99 per meal or $66.93 per box.  Meanwhile, other plans, like the Lean & Clean plan will cost $12.99 per meal and $84.93 per box.

Honestly, Green Chef’s pricing structure is somewhat confusing. For example, the initial advertising leads you to believe that meals start at $9.99. But when you go to pay, you’ll see that you are actually paying between $7.82 and $8.82 per serving for a two-person meal plan. That’s nice because it means Green Chef is offering a discount for first-time members. What’s not clear is what happens if you add people to your plan. The price goes up to $7.91-$10.91 per serving if you order for four people. That seems counter-intuitive to me.

Another great thing about Green Chef’s plan structure is that it offers a Family Plan. One of the biggest niches meal kit delivery services cater to is families who don’t have time to cook but care about nutrition. So, it’s surprising to find that not a lot of them offer discounted family plans, and it’s nice to see that Green Chef does. You can get a Family Plan subscription for $10.99 per meal or $94.91 per box. Just keep in mind that you can only order Omnivore or Carnivore plans with the Family Size.

Green Chef Meal Options	Cost Per Serving (for 2-person plan)
Keto Plan	$8.82
Paleo Plan	$8.82
Omnivore Plan	$7.82
Plant-Powered Plan	$7.82
Gluten-Free Plan	$7.82
Pescatarian Plan	$7.82

All plans come with a $6-$9 shipping charge depending on your area. Green Chef ships everywhere except Alaska, Hawaii, and some parts of Louisiana.

Green Chef is also currently running a promotion – they’ll give  you $25 off your first three orders.

Green Chef Pros & Cons

Green Chef does a lot of things right, but it’s not flawless. Here are a few areas where this meal kit delivery service shines and where it could use improvement.

Who is Green Chef Best For?

Green Chef is an excellent option for a lot of busy people, but it won’t work for everyone. Here’s who will really appreciate this meal kit delivery service:

• People who care a lot about the environment: If the environment matters to you (and it should!) then Green Chef is a good option for you. Kits come in cardboard (recyclable) boxes with climacell insulation (recyclable, plant-based insulator) and ice packs (recycle, reuse, or donate to charity). Not only is all the packing material recycled and recyclable, but Green Chef is constantly looking for new ways to increase sustainability and eco-friendly practices.
• Anyone who wants to eat healthier: As mentioned above, Green Chef is one of the highest quality meal kit delivery services out there. It uses only the best organic ingredients, has a personal relationship with local farmers, and opts for premium quality in all its sauces. The meals themselves are also healthier, promoting a healthy balance of the right amount of carbs, proteins, and fats for your specified diet.
• You, if you just don’t have time to cook: With all the ingredients included, the recipe chosen and explained, and the food items prepped and ready to go, Green Chef makes sure that just about anyone can find the time to toss together these meals.
• People who have specific dietary needs: Green Chef really covers the spectrum with its plans. No matter what the type of diet you are tied to, whether it’s gluten-free, pescatarian, keto, paleo, or whatever, you’ll be able to find the right diet plan to fit your needs.

>> If you sign up here you can get $25 off your first 3 orders

Who it’s Not For

On the other hand, Green Chef isn’t for everyone. You won’t appreciate this meal kit delivery service if this is you:

• Budget-conscious eaters: Green Chef is not cheap. You can do a quick price comparison to see that there are cheaper meal kit delivery options out there. It’s most likely because of the premium quality ingredients that Green Chef charges a little more than other services.
• People who don’t care about food quality: If you’re really just in this for the fast and easy, then you should opt for one of the cheaper meal kit delivery services. Or better yet, just go with one of the ready-made meal delivery services. These meals come already cooked, and you just have to heat and eat.
• Anyone who lives in Alaska and Hawaii: If you’re in one of these states, you’re out of luck. (Also, some outlying areas of Louisiana.)

Alternative: Home Chef Review

Bottom Line

Green Chef definitely delivers on its promise of being a green, healthy, and easy alternative to eating out. The ingredients are all superior quality, something important to anyone who wants to eat better, and the chef-inspired recipes are delicious. The recipes are fairly easy to follow, and the fact that everything is portioned out for you already makes cooking a cinch, even for those of us who aren’t so handy around the kitchen. Pricing structure is a little confusing and meals are a bit on the high side, but if you’re willing to spend the money on it, Green Chef is definitely a great example of you get what you pay for.

Visit Green Chef – Get $75 Off

Topics: Reviews

The post Green Chef Meal Delivery Review – Healthy, Hearty and Earth-Friendly appeared first on The Dough Roller.

via Finance Xpress

Posted by: Adam McCann

Americans are known for racking up credit-card debt, but just how much we have in total is shocking. At the beginning of 2019, Americans owed over $1 trillion in credit-card debt. And though we repaid $38.2 billion in the first quarter of the year, we’re projected to have a $70 billion net increase by the end of the year.

Americans aren’t all in the same boat when it comes to credit-card debt, though. People in some states are better than others when it comes to avoiding charging more than they can afford. To determine which states have the least and most sustainable credit-card debts, WalletHub drew upon TransUnion credit data to calculate the cost and time required to pay off the median card balances of each of the 50 states and the District of Columbia. Read on for the full findings, commentary from a panel of experts and a detailed description of our methodology.

1. Main Findings
2. Ask the Experts
3. Methodology

Main Findings Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/63822/geochart-state-credit-card-debt.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2YEM59a>

 

States with the Highest & Lowest Credit-Card Debts

Rank*	State	Median Credit-Card Debt	Cost to Pay off	Months & Days Until Payoff
1	Alaska	$4,144	$575	19 months and 11 days
2	District of Columbia	$3,242	$404	17 months and 12 days
3	Vermont	$2,227	$247	15 months and 14 days
4	Washington	$2,880	$313	15 months and 3 days
5	Colorado	$2,985	$324	15 months and 3 days
6	Oregon	$2,641	$282	14 months and 29 days
7	Wyoming	$2,712	$290	14 months and 29 days
8	Virginia	$3,081	$327	14 months and 26 days
9	Montana	$2,579	$269	14 months and 17 days
10	New Mexico	$2,613	$268	14 months and 7 days
11	Kansas	$2,574	$264	14 months and 7 days
12	Texas	$2,860	$292	14 months and 4 days
13	Idaho	$2,426	$247	14 months and 4 days
14	North Dakota	$2,385	$236	13 months and 24 days
15	Georgia	$2,786	$274	13 months and 22 days
16	Utah	$2,508	$246	13 months and 20 days
17	Massachusetts	$2,459	$241	13 months and 19 days
18	California	$2,672	$261	13 months and 18 days
19	Arizona	$2,686	$262	13 months and 17 days
20	Minnesota	$2,510	$245	13 months and 17 days
21	Oklahoma	$2,628	$255	13 months and 15 days
22	North Carolina	$2,593	$251	13 months and 14 days
23	New Hampshire	$2,511	$242	13 months and 11 days
24	Nevada	$2,645	$254	13 months and 9 days
25	Maryland	$2,819	$270	13 months and 8 days
26	Tennessee	$2,544	$243	13 months and 8 days
27	Michigan	$2,343	$224	13 months and 7 days
28	South Carolina	$2,579	$245	13 months and 4 days
29	Maine	$2,265	$214	13 months and 2 days
30	Connecticut	$2,755	$260	13 months
31	Wisconsin	$2,120	$197	12 months and 29 days
32	Missouri	$2,460	$228	12 months and 29 days
33	Florida	$2,603	$239	12 months and 22 days
34	New York	$2,600	$238	12 months and 22 days
35	Louisiana	$2,600	$237	12 months and 19 days
36	New Jersey	$2,701	$246	12 months and 19 days
37	Illinois	$2,665	$241	12 months and 17 days
38	Rhode Island	$2,392	$216	12 months and 15 days
39	Iowa	$2,091	$188	12 months and 14 days
40	West Virginia	$2,331	$210	12 months and 14 days
41	Nebraska	$2,302	$207	12 months and 13 days
42	Ohio	$2,325	$207	12 months and 9 days
43	Arkansas	$2,353	$202	11 months and 29 days
44	Hawaii	$2,868	$246	11 months and 28 days
45	South Dakota	$2,449	$209	11 months and 25 days
46	Delaware	$2,515	$213	11 months and 23 days
47	Pennsylvania	$2,344	$198	11 months and 21 days
48	Alabama	$2,451	$206	11 months and 19 days
49	Kentucky	$2,248	$187	11 months and 14 days
50	Mississippi	$2,258	$170	10 months and 9 days
51	Indiana	$2,313	$167	9 months and 29 days

*1 = Least Sustainable Credit-Card Debt

 

 

Ask the Experts

With record-setting projections for credit-card debt in 2019, we asked a panel of credit experts to shed light on the unsustainable credit behavior that leads to such negative results and their effects on the economy. Click on the experts’ profiles to read their bios and thoughts on the following key questions:

1. What daily behaviors lead people to amass credit-card debt?
2. What are the key situations when going into debt is worth it?
3. What are three easy steps a person should take in order to become debt-free?
4. What role, if any, should government play in incentivizing and encouraging people to maintain low debt-to-income ratios (e.g., through tax incentives)?

< >

• Debra Z. Blatz Ph.D. – Professor, Marketing and Entrepreneurship, The Bill Munday School of Business, St. Edwards University
• Jennifer Brodmann Ph.D. – Assistant Professor of Finance, Department of Accounting, Finance, and Economics, California State University Dominguez Hills
• Brandon Ware Associate Professor, Business, Biola University, Crowell School of Business

Methodology

In order to determine the states with the most and least sustainable credit-card debts, we first looked at the median credit-card balances and credit card payments of residents in each of 50 states and the District of Columbia as of September 2018, based on TransUnion data. Our analysis includes credit cards that carried a balance and excludes store cards.

Using the median credit-card balance and monthly credit card payment of residents in each state, we determined the required number of months to pay off that balance and the resulting finance charges. In order to do so, we made the following assumption:

• Consumers would pay an average 16.91 percent interest rate, based on the APR paid by existing cardholders, according to the average interest rate assessed on accounts with finance charges. Using that percentage, we computed the cost of paying off the state’s median credit-card balance.

Finally, we ranked the states based on the calculator’s outputs. Rank 1 corresponds with the state with the least sustainable credit-card debt — that is, the state with the longest payoff timeline.

 

Videos for News Use:

• YouTube (for web embedding National)
• Raw files (for editing into clips)

 

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Federal Reserve and TransUnion.

Image: Rawpixel.com / Shutterstock.com

from Wallet HubWallet Hub


via Finance Xpress

Home is where the heart is… and the tax breaks. Here are 8 tax benefits for buying and owning a home.

I recently took a new job in another state, which caused me to sell my home and find a place to rent. I’ve now been renting for over a year and must say that I love it.

I like not having to worry about repairs or paying property taxes.

But one of the things I was reminded of this tax season that I really do miss are the tax benefits for buying and owning a home.

Seriously, owning a home can not only give you a cheaper monthly payment than renting but in many cases, the tax benefits make the decision a no-brainer.

Because this is such a heated debate, I am going to cover the main tax benefits you’ll see when you own a home. From there, you can make a decision on what’s right for you.

Buying and Owning a Home Tax Benefits

1. The interest you pay on your mortgage is deductible (in most cases)

If you own a home and don’t have a mortgage greater than $750,000, you can deduct the interest you pay on the loan. This is one of the biggest benefits to owning a home versus renting–as you could get massive deductions at tax time.

The limit used to be $1 million, but the Tax Cuts and Jobs Act of 2017 (TCJA) reduced the limit and made some clarifications on deducting interest from a home equity line of credit.

Prior to TCJA, you could deduct interest on a mortgage up to $1 million plus a HELOC up to $100,000. And it didn’t matter what your HELOC was used for (i.e., student loans, credit card debt).

TCJA clarifies that you can deduct HELOC interest but must still stay under the total limit of $750,000 and be used to improve the home. According to the IRS:

“The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan.”

As you can also see, TCJA is in effect until 2026 and the law applies to mortgages and HELOCs taken out after December 15, 2017. If you’ve taken a mortgage out before that date, the $1 million limit will still apply.

The deduction is made simple if you’re using software like TurboTax, but if you’re not, just remember to review the IRS Form 1098 that will be sent by your lender and detail the amount you paid in interest on your loan on your tax return.

You can also include interest that you may have paid as part of your home closing–you can find this on the settlement sheet. For more information, TurboTax has put together a nice set of frequently asked questions on this topic.

2. The amount you pay in property taxes is deductible, too

Another awesome benefit to owning a home is the ability to deduct your property taxes. Before TCJA, the rules were a little more flexible and you were able to deduct the entirety of your property taxes. Now things have a changed a bit.

Under the new law, you can deduct up to $10,000. The deduction for state and local income taxes was combined with the deduction for state and local property taxes, too. You also can no longer deduct foreign property taxes as you could pre-TCJA.

As I showed you above, TCJA is in place until 2026 (through 2025). If the law is extended or modified, we could see more of this. If nothing is done, the rules will go back to the way they were before this law was enacted. But for at least the next several years, I’d anticipate a cap of $10,000 in deductions on property taxes.

If your taxes are paid through an escrow account with your lender (i.e., they’re added into your monthly mortgage payment and paid by the lender) you will see the amount you paid in taxes on your IRS Form 1098–so you can apply that deduction directly to your taxes.

If you pay your taxes directly to the municipality you live in, you’ll need to make sure you have a record of the money you paid (i.e., a copy of the check you used). You can also deduct any taxes that you reimbursed to the seller if they prepaid it while owning the home (find these on the settlement sheet).

For more information, you can read about how to claim property taxes on your tax return this year.

3. You can get a tax deduction for points (over the life of your loan!)

If you paid points to your lender when you got your mortgage or refinanced an existing one, you can take advantage of a tax deduction. The only caveat is that you have to have actually given money to the lender for these points.

We’ve talked about mortgage points before, but to refresh your memory, they’re almost always expressed as a percentage of the loan. So if each point is 1.5% and your home is $300,000, each point would cost you $4,500.

Where this benefit really kicks in is if you have a home equity line of credit or you’ve refinanced your loan. According to the IRS:

“You can deduct points paid for refinancing generally only over the life of the new mortgage. However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first six requirements stated above, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. You can deduct the rest of the points over the life of the loan.”

Assuming you do meet the qualifications, you can deduct the the amount you pay toward points each month you made payments. When you make a mortgage payment, a fractional percentage is built into the loan for points–that’s the amount you can deduct. So for example, if $10 of your payment each month is for points, you could deduct $120 at the end of the year (12 x $10), given you’ve made payments every month of the year.

I would definitely recommend talking to a tax professional before you take deductions on points. You can read more about deducting mortgage points appropriately in this article.

4. Private Mortgage Insurance (PMI) can be deducted in some cases

Private Mortgage Insurance (or PMI) is a fee you have to pay when you put less than 20% down on your home. Lenders do this to protect themselves from losses in the event you default on your loan.

If you took our your mortgage after 2007, it’s possible you can claim a tax deduction on your PMI payments. The current tax law states that you can claim the deduction if your adjusted gross income is $100,000 or less if you’re married or $50,000 if you’re single.

This hasn’t always been an option, though. According to House Loan Blog, “the mortgage insurance premium deduction extension was one of 30 tax provisions President Trump agreed to extend on February 9, 2018, when he signed H.R. 1892, the Bipartisan Budget Act of 2018.”

As of right now, you can take advantage of this, but be mindful that it gets reviewed annually. We always recommend trying to put 20% down on your home loan so you avoid this, but we know it’s not always realistic. This tax deduction provides a silver lining to having to pay PMI.

5. There are tax benefits to selling your home, as well

As our lives change, so do our housing situations. It’s not common for people to take out a 30-year loan and live in their home for those 30 years anymore. The way we look a housing has changed.

With that said, it’s safe to assume we’ll sell our homes at some point. That’s where the next benefit comes in–the home sale exclusion. If you’ve lived in your primary residence for two out of the five years before you sell it, you’re excluded from paying taxes on any profits you make for up to $500,000 if you’re married and up to $250,000 if you’re single.

Let’s say you’re single and you buy a home for $200,000 and live in the home for seven years. Say over the time you put $50,000 of improvements into it–making your total investment $250,000.

Then say on the seventh year you sell the home for $400,000, as values in your market have increased significantly. You just made a profit of $150,000. According to the home sale exclusion, none of that $150,000 is counted as taxable income. This could save you thousands of dollars at tax time.

If for any reason you didn’t meet the requirement of living in the home two out of the five years before sale, you can still take advantage of the home sale exclusion–but your deduction will be prorated. You can learn more about the home sale exclusion in this article.

6. You’re rewarded for making energy-efficient upgrades

While most of the tax incentives for making energy-efficient upgrades to your home have gone away, there are still a couple worth noting. You can still claim tax deductions on solar energy–both for electric and water heating equipment, through 2021. The longer you wait, though, the less money you’ll get back. Here’s the percentage of equipment you can deduct, based on time of installation:

• Between January 1, 2017, and December 31, 2019 – 30% of the expenditures are eligible for the credit
• Between January 1, 2020, and December 31, 2020 – 26%
• Between January 1, 2021, and December 31, 2012 – 22%

7. Deductions if you age in place

According to SeniorLiving.org, “aging in place means a person making a conscious decision to stay in the inhabitation of their choice for as long as they can with the comforts that are important to them. As they age these may include adding supplementary services to facilitate their living conditions and maintain their quality of life.”

If you plan to live in your home for a long time, you can deduct expenditures that assist you with aging. Some common examples are wheelchair ramps that you’d install to enter your home or grip bars in a bathtub to avoid slipping.

You may also be able to get deductions on things like lowering electrical figures or cabinets, among other home adjustments. Time.com covers some of the adjustments that are eligible, as well as some of the rules here.

8. Benefits for those who work at home

Whether it’s a side hustle or a full-time work from home position, you can deduct your home office expenses and space that is used. The current tax law allows you to take a tax deduction of $5 per square foot, for up to 300 square feet of office space. You can get a maximum deduction of $1,500, but know that there are extremely tight guidelines on expensing your home office. I would always suggest talking to a tax professional, but if you want to read more about it first, TurboTax did a really in-depth piece about this topic.

Conclusion

While it won’t completely squash the rent versus buy debate, understanding the tax benefits of buying and owning a home can help you make a more educated decision. In fact, you may have not known about some of these, or known the degree to which they can benefit you at tax time. As I’ve stated numerous times throughout the article, make sure you’re consulting with a tax professional before making any serious deductions on your taxes. At the very least, use a premium product like TurboTax, which offers a ton of live help and walks you through all of this stuff, step-by-step.

Topics: Taxes

The post 8 Tax Benefits for Buying and Owning a Home appeared first on The Dough Roller.

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Posted by: John S Kiernan

After a string of nine interest-rate increases that took the Federal Reserve’s target rate from near zero in December 2015 up to a range of 2.25% - 2.5%, the Fed is poised to reduce rates for the first time since the Great Recession. Exactly what impact such a move will have on consumers’ wallets and the economy more broadly remains to be seen. But the hope is that lower rates will prolong what is already the longest economic expansion on record. At the very least, we can expect people with credit card debt to save hundreds of millions of dollars on interest.

To help shed some light on what we can expect from interest rates in the near future and how Americans feel about the prospect of a Fed rate cut, WalletHub conducted a nationally representative survey and assembled some relevant research. You can find the survey results below.

Key Findings

 

There is a 79% chance of the Fed reducing its target interest rate by 25 basis points and a 21% chance of a 50-basis-point rate cut.

72% of people say the Federal Reserve should drop interest rates this month.  

 

69% of people say the Federal Reserve knows how to grow the economy better than President Trump.  

 

72% of people agree with President Trump that it’s time for the Fed to drop rates.  

 

48% of people say they will be more confident in the economy if the Fed cuts rates.  

 

61% of people say it’s good for the economy when the Federal Reserve cuts interest rates.  

 

72% of people say it’s good for their own wallet when the Federal Reserve cuts interest rates.  

 

66% of people say the interest rates on their loans are currently too high.  

 

77% of people say their credit card interest rates are currently too high.  

 

The 29% of people who say credit cards become less expensive after a Fed rate cut are correct. Things aren’t as clear-cut for the 44% who think mortgages do, however.  

 

The Federal Reserve has increased its target rate nine times since December 2015, with no decreases.

Fed Rate Cut Impact by Loan Type

Interest rates on financial products, from credit cards to car loans and mortgages, are generally based on some sort of benchmark rate, which in turn is influenced by the Federal Reserve’s target interest rate in one way or another. So when the Fed’s target rises or falls, the interest rates consumers pay, and the overall cost of borrowing do too. The rates we earn on deposit accounts aren’t nearly as quick to react.

Below, you can see how Fed interest rate increases have impacted consumers’ finances in the past as well as how much we can expect a July 2019 rate cut to influence us.

Credit Cards:

The vast majority of credit card rates are variable, tied to the Prime Rate. As a result, we expect to see credit card rates decrease the same amount as the Fed’s target.

• A 25-basis point cut will save credit card users roughly $1.5 billion in extra finance charges during 2019.

• Due to the nine Federal Reserve rate hikes from Dec. 2015 to Dec. 2018, credit card users were set to pay roughly $14 billion more in interest during 2019 than they would have otherwise.

Mortgages:

If recent rate hikes are any indication, we won’t see much of a change following a July rate cut, as the mortgage markets have already accounted for the move. Mortgages have fixed rates that are priced with a far longer timeframe in mind than other borrowing vehicles.

However, that is not to say Fed rate changes don’t make mortgages more or less expensive for new borrowers. WalletHub’s analysts estimate that this rate cut has already decreased the cost of new mortgages by around 10 basis points.

• The Fed has cost the average homebuyer ($230,984 loan) more than $38,000 since the start of 2015, if you assume the 80-basis point rise in the average APR on a 30-year fixed-rate mortgage from January 2015 to January 2019 is due solely to the nine Fed rate hikes that occurred during that timeframe.

Auto Loans:

• WalletHub expects the average APR on a 48-month new car loan to fall by around 15 basis points in the months following a 25-basis point rate cut by the Fed.

• The average APR on a 48-month new car loan rose from 4.00% in November 2015 to 5.35% in May 2019 (the most recent data available). That’s a 135-basis point increase in a period characterized by 225 basis points in Fed rate hikes, plus record auto sales.

Deposit Accounts:

• WalletHub expects little, if any, change in the APYs available from most deposit accounts following the Fed’s rate cut. Yields did not rise much following rate hikes, and they’re already at quite low levels historically.

• Unlike branch-based accounts, online savings accounts did react to previous Fed rate hikes, with yields increasing by an average of 95 basis points since December 2015 (225 basis points in Fed hikes since then). As a result, we expect online savings account yields to drop the most after a Fed rate cut – around 11 basis points.

Interest Rate Change by Account Type (Q3 2015 to Q2 2019)

 *The above graph reflects the average rate for new offers in each category, with the Federal Reserve’s target rate serving as a benchmark.  

from Wallet HubWallet Hub


via Finance Xpress

If you are looking to buy a house, I have a bunch of home buying tips that will help you sort through all of your options, understand the real cost of a home (and help you save money), and make the right choice. 

Buying a house is a huge purchase.

In fact, it is usually the largest purchase a person will ever make.

The median U.S. home value is $226,800 and the median price of homes currently listed is $291,900, according to Zillow. And, there are some areas that have much higher average home prices, like four to five times more.

Purchasing a house is a huge commitment, and it’s easy to get excited and forget to think about some very important things before plunking down a huge amount of money. There are just so many factors to think about, and not everyone will have the same concerns. 

To help you through the home buying process, today’s post is going to be like a mini first time home buyer guide. I’m going to cover some of my best home buying tips, like:

• Whether or not you should rent instead of buy
• How to set a budget (one of the most important steps to buying a house)
• Deciding what you want in a home
• How to research the true cost of a house
• Thinking about how long you’ll live in an area (recouping your costs)
• How to avoid feeling rushed
• Do you really need the house you’re about to buy

Whether you are a first time home buyer or if this is your second house or more, these are all things you should be thinking about.

Actually, these are the exact same things me and Wes have thought about before buying our sailboat and RV. They might not be “normal” homes, but they are what we live in. Plus, they are still very large purchases that need to be carefully thought out.

The home buying tips that I’m about to give you are to help you analyze what’s best for your situation – whether that’s a 5000 sq. ft. house, a 500 sq. ft. tiny home, an RV, a condo, etc.

I’ve said it already, but buying a house is a large purchase! And, everyone has felt that dreadful feeling that comes after making a large purchase and realizing that you have made a mistake. Perhaps you don't realize for months or years later, but you eventually understand that you should have thought out your purchase a little bit more.

No one wants to feel this way after buying a house!

Articles related to buying a house tips:

• Smaller Can Be Better- Maximize Your Savings With A Small House
• How I Paid Off My $400,000 Mortgage In 7.5 Years, Before I Was 32
• 20 Ways I Saved a 20% Deposit To Purchase My First Investment Property At 20
• 11 Tips For Renovating An Abandoned 115 Year Old House On A Budget
• Can You Remove PMI From Your Mortgage?

Here are my best home buying tips.

 

Should you rent instead?

Before we started RVing, we sold our house and rented one for a little while. This raised quite a few eyebrows and led to questions about renting vs. buying from nearly everyone.

I even had several people tell me that I was making a stupid mistake.

I wasn't surprised, though. Many people believe the myth that if you are renting a home you don't know how to manage your money and that buying is always better, no matter what.

That couldn't be further from the truth.

Sometimes buying can be the better decision, but there are times when renting can fit a person's situation much better.

Buying a house can have a lot of positives, but that doesn’t mean it’s the right step for everyone.

To determine if renting is better for you, you'll want to think about things such as:

• How long you think you'll live in the area.
• Whether or not you're ready to purchase a house, financially and/or responsibility wise.
• Buying a home sometimes may be cheaper than renting, and the other way around.

Nearly everyone says that a house is a good investment. Many people will even go as far to say that doing anything other than owning a house would be a complete waste of money.

However, I don't agree with that at all.

Buying a house isn't for everyone. You shouldn't just jump at the opportunity to buy a house, especially any ol' house. And, you should think about all of the factors before deciding that buying a house over renting one is the best and only decision for you.

For home more renting vs. home buying tips, please read My Opinion Of The Great Renting vs Buying Debate for more information.

 

Set a budget before you look at homes.

One of the first things you will want to do is to set a budget – you can’t go very far in the home buying process without one. It’s how you will know what you want to be pre-approved for, and a realtor will need that information to really help you shop for homes.

You will want to set yourself a budget when it comes to the home as well as all of the other expenses that go along with owning a home.

You will want to look at your overall financial situation and analyze:

• The income you earn.
• The stability of your job.
• The amount of money you have saved for the down payment, other home expenses, etc.
• Your credit history and credit score.
• The total monthly amount you feel comfortable paying for a home. Make sure you look at all the costs involved!
• Your total amount of debt.

When buying a house, it takes realizing all of these factors to understand what you can truly afford and be comfortable with.

However, many people justify buying a house that is over their budget, but that is a bad plan. 

See, banks often pre-approve people for a mortgage payment that is higher than what they can afford to pay. You pre-approval number is not a good gauge of what you can afford because it doesn’t factor in the total cost of the house. 

What you can afford takes that above list into consideration, not just the number a bank gives you. Because of that, it can be a very bad idea to go over the number the bank pre-approves you for. You should always stick to an amount that you can afford.

When determining what you can afford, you will want to think about ALL of the costs that come with buying a house and living in it. This means that your research should not end with the purchase price of the house – it actually goes way past that, as discussed in a later section of my home buying tips. 

 

Think about what you want in a home.

If you are like most people, you’ve spent years thinking about what you want in a home.

Now is the time to make a list of those things.

Buying a house can lead to a crazy amount of new feelings – happiness, stress, excitement, and more. This can sometimes make every house you look at seem like the perfect one, and that’s because they all seem so new and exciting. This even happens with houses that don’t have everything you need. And, it definitely happens with ones that have more than you need.

Before you put an offer on a house, you should think about the reasons for why you want a specific house. This is one of the first steps to finding a house that’s right for you, as this can make sure you are getting exactly what you want and need, rather than just being happy with any home.

I recommend creating a wish list that includes all of the things you want in a home. Your wish list could include things like:

• The square footage of the home
• Size of yard
• If you want a fenced in yard
• How many bedrooms and bathrooms you desire
• The age of the home
• The quality of the schools
• The parking situation and whether or not there is a garage
• The size of the kitchen
• Pool or no pool
• Style of home
• Whether you want to be in the country or the city
• Your budget, and this one is extremely important!

And, you'll also want to create a list of things that you want to stay away from, such as if you don't want a place with a pool, a home with a lot of yard maintenance, a home that is a fixer upper, and so on.

By having this wish list on hand, you'll know exactly what you should be looking at, and what you should avoid.

 

Research all of the expenses.

Like you just read, the listing price of a home is not all that you should look at.

When you find a home that you think is right for you, you need to make sure that you can afford all of the costs that come with that home. 

Just because you can pay the monthly mortgage payment doesn't mean that you can afford everything else that goes with it. There are ongoing costs when buying a house, which is something that many homebuyers forget about. 

In fact, U.S. homeowners, on average, spend more than $9,400 per year in hidden homeownership costs, and maintenance expenses cost homeowners an average of $6,300 per year in unavoidable hidden costs, according to MarketWatch. These include things like homeowners insurance, property taxes, and utilities. So, this is one of the best home buying tips to help you stay out of a bad financial situation.

Before making a home purchase, you should think about how much the home will cost you in the long run. There are many ways to think of this, such as:

• Property taxes. These vary widely from town to town. You may find yourself looking at two similar houses with similar price tags, but the property taxes may vary by thousands of dollars annually. That is a LOT of money. While it may seem small when compared to the actual home purchase price, remember that you have to pay property taxes annually, and a difference of just $3,600 a year is $300 a month.
• Gas. Many homes use gas to run the hot water heater, the stove, and so on.
• Electricity. Generally, the bigger your home, the higher your electricity bill.
• Sewer. This isn’t super expensive, but it is generally around $30-$50 a month.
• Trash. This isn’t super expensive either, but it does cost money.
• Water (and possibly irrigation).  Depending on how you use water and where you live, water bills can vary widely. I know many who live in areas where the average water bill is a few hundred dollars each month.
• Home insurance. Home insurance can be cheap in some areas but crazy expensive in others. Don’t forget to look into the cost of earthquake, flood, and hurricane insurance, and know that it can add up quickly depending on where you live.
• Maintenance and repairs. No matter how old your home is (even brand new homes), repair and maintenance costs will eventually come into play. In fact, U.S. homeowners pay an average of $3,435 per year in annual optional costs, including house cleaning, yard care, gutter cleaning, carpet cleaning, and pressure washing. But, don’t forget about things like needing a new roof or other repairs that may come up! Those are big expenses that you will need to be able to save up for.
• Homeowners association fees. This can also vary widely. You should always see if the house you are interested in is part of an HOA. Often, the fees are high and involve rules you may not like.
• Home furnishings. Furnishing your home can be done cheaply, but I know some who buy huge homes and can’t afford to put anything in them, such as a table, a bed, and so on. Why own a $500,000 house if you don’t have any furniture?

Always remember to add up the total cost when deciding to buy a house!

 

Estimate how long you will live in the area.

This is one of the home buying tips you might not think of because you are so anxious to be moving. How could you possibly think about moving again already?! 

Here’s why this is important to think about – it usually takes around five years to recoup the costs you paid to purchase a house. If you only live in a house for one or two years, then you may lose money on closing costs, due to the volatility of the real estate market, and more. Plus, it usually takes some time and legwork to buy a house, so you may not want to do it again so soon.

This is why you'll want to think about how long you'll be living in the area before you purchase your home.

You'll want to make sure that the house will be suitable for you for at least five years, so you’ll want to think about things such as:

• Are you happy with the area?
• How are the schools?
• Is the house big enough if you plan on starting a family?
• Do you plan on working in the area for at least 5 years?

And so on. 

You really need to think about your future when deciding to buy a house.

 

Don't feel rushed.

This is one of the home buying tips that is hard during a seller’s market, which is what’s happening in many areas right now. Knowing that homes are selling very quickly, you may feel rushed to find a house and put an offer in. 

It’s also tempting to jump on a house the minute you find something you like, but if the purchase can wait 24 hours, then you may want to delay it. This will allow you more time to think about the purchase, go over your budget again, let any butterflies you have about the home purchase go away, and so on.

You will be able to make a much more rational decision if you think about your decision for at least 24 hours.

Plus, for all you know, you may even realize that you don't want the house at all!

 

Do you really need or want that home?

Finally, the last of my home buying tips is to think about whether or not you actually need the house you are about to buy. It sounds easy enough, but many people do not even think about asking this question. When in fact, it is one of the most important questions to ask when buying a house (or any large purchase for that matter).

Really dig deep and ask yourself this simple question. Sure, you might think you want the house, but have you also been able to spend time thinking about the rest of my tips? 

Do you know the full cost of the house? Are you okay spending that much? Does the house have everything you need? 

Purchasing a home is a huge investment, and it deserves a lot of time and thought for you to make the best decision.

Have you bought a home recently? What other home buying tips should people think about?

The post Home Buying Tips You Need To Know Before You Buy appeared first on Making Sense Of Cents.

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