FEBRUARY 2015
WEEK 4
In This Issue
Could High-End Amenities Make Your Home
Harder to Sell?
by FoxBusiness


 

 

When it comes to luxurious living, location is the crown jewel of home ownership. But which high-end amenities offer a return on investment - and should therefore be considered - and which don't?

 

Strong curb appeal

 

Everyone wants a nicely manicured lawn and attractive landscaping, but going overboard with extras such as complex water features, animal-shaped hedges or a jungle-themed entryway is not universally appealing, and could be detrimental to your home's value.

 

Master bedroom with a walk-in closet

 

Most people spend a lot of time in their bedrooms, so these spaces need to be extra special. A serene retreat - complete with large, fully functioning boutique-style walk-in closets - represents the ideal for many homeowners.

 

Spa-like bathroom

 

Spacious bathrooms that offer serenity and solitude - with soaking tubs, steam showers and heated floors - are highly desirable. But installing a hot tub that comfortably seats six is going overboard.

 

High-end audio-video systems

 

Deluxe home theater and stereo equipment doesn't have lasting value, because this technology becomes outdated so quickly. Unless you're installing a home theater for your own long-term enjoyment, think in simplistic terms. Typically, if the residence is wired for custom audio-video, then you're all set.

 

In-ground swimming pool

 

While an in-ground swimming pool is expected in some parts of the country, like Arizona and Florida, a pool in more seasonal climates often doesn't add much value to your home and could even decrease its value.

 

Why? Pools are a high-maintenance, costly feature that many consider dangerous, especially families with young children. And adding water slides, waterfalls, virtual amusement parks and other backyard elaborations is a financial no-no.

 

Dallas Home Prices Surge   on Short Supply  
by CNBC

 

Unlike much of the nation, Dallas is seeing a warmer-than-average winter, and a very hot housing market. The median price of a Dallas home was 12.3 percent higher in December 2014 than it was a year earlier, according to the  MetroTex Association of Realtors. That is more than twice the national annual price gains.

"Buyers are seeing sticker shock, but they're buying anyway," said Laura Barnett of RE/MAX DFW Associates.

 

Barnett said she listed a house a week ago at $399,900 and it has already sold for $416,000.  "We had five to seven offers. It's like that anywhere. Anything below $500,000 is going to go quickly," she said.

 

 

Like much of the nation, Dallas has a severe shortage of inventory, which is driving prices higher. There were 26 percent fewer homes for sale in December 2014 than in the previous December. Closed sales were down 3.5 percent, but that is more a factor of limited supply than of demand. 

 

Dallas is seeing a strong influx of residents, as large companies move workers into the area. Dallas is also seeing Mexican nationals moving in, Barnett said. 

 

While Texas has seen one of the strongest housing trades in the nation during the economic recovery, there are concerns that the falling price of oil will hurt the market. Dallas, however, may be less sensitive to that than Houston, as there are a lot of other dynamics in the Dallas-Fort Worth area. 

 

The list of companies expanding into the area is long: Toyota, Novartis, Barclays Bank, CVE Technology Group, to name a few. While area real estate agents are certainly watching for energy-related layoffs, they are not seeing many yet.

 

Like much of the nation, Dallas has a severe shortage of inventory, which is driving prices higher. There were 26 percent fewer homes for sale in December 2014 than in the previous December. Closed sales were down 3.5 percent, but that is more a factor of limited supply than of demand. 

 

Dallas is seeing a strong influx of residents, as large companies move workers into the area. Dallas is also seeing Mexican nationals moving in, Barnett said. 

 

While Texas has seen one of the strongest housing trades in the nation during the economic recovery, there are concerns that the falling price of oil will hurt the market. Dallas, however, may be less sensitive to that than Houston, as there are a lot of other dynamics in the Dallas-Fort Worth area. 

 

The list of companies expanding into the area is long: Toyota, Novartis, Barclays Bank, CVE Technology Group, to name a few. While area real estate agents are certainly watching for energy-related layoffs, they are not seeing many yet.


 
3 in 8 Americans Live on Edge of Financial Disaster
by Daily Finance
 
Americans feel the most financially secure that they have in four years. But the good feelings stand in contrast to the reality that 37 percent are on the "edge of financial disaster", according to a statement by Bankrate.com Chief Financial Analyst Greg McBride.

A new Bankrate.com-commissioned poll of 1,003 adults with a margin of error of plus or minus 3.7 percentage points showed that when it came to financial basics, 37 percent of Americans had no net resources to deal with an emergency. Twenty-four percent had more credit card debt than they had emergency savings and another 13 percent had no savings. At least the latter had no credit card debt in addition.


What Is Your Risk Tolerance?
Adults between the ages of 30 and 49 were in the worst shape, as 32 percent of them had more credit card debt than savings. Only 21 percent of those under 30 and 14 percent of people 65 and older had more debt than savings. Those same two groups tended to have more savings than debt.

The group most likely to have neither credit card debt nor savings was those with the lowest income. Of those making less than $30,000 a year, more than 20 percent had neither debt nor savings. Only 5 percent of those making at least $75,000 were in a similar situation.

When asked how they felt about the amount of savings they had compared to a year ago, 47 percent said the same, 22 percent said more comfortable, and 28 percent felt less comfortable. Among unemployed workers, a third felt less comfortable, compared to 25 percent of those with jobs. Thirty-seven percent of those making between $30,000 and $49,900 a year felt less comfortable versus 21 percent of those making $75,000 or more.

People Still Feel More Confident

And yet, the savings picture is actually an improvement and part of a more optimistic sense about financial security. Bankrate's financial security index reached, at 104.8, the highest level it has in its four-year history, beating a previous high in January. Any figure above 100 shows a sense of increased financial security over the past 12 months.

Twenty-four percent of respondents felt more secure in their jobs, 63 percent felt the same, and 12 percent felt less secure, with 1 percent either uncertain or refusing to answer. Fifty-two percent felt the same as they did 12 months ago about the amount of debt they had while 29 percent were more comfortable and only 17 percent were less comfortable. So even if savings were a little more negative, improvement in the debt picture apparently more than made up for it.

However, the picture is more strained for those between 50 and 64. As they near retirement age, 25 percent felt less comfortable with their amount of debt. That compares to 12 percent of millennials and 17 percent between 30 and 49.

Also, 28 percent of people said their net worth was higher, 56 percent said it was the same, and 13 percent described it as lower.

 

10 Signs You're Taking Frugality Too Far and Are a Cheapskate
by DailyFinance


Frugality is an admirable ethic, but as with any pursuit, sometimes it can go too far. The name of the game isn't spending the least money possible; it's spending your time, energy and money in a sensible way.

Times may be tough, but these 10 Depression-era tactics are taking things a bit too far. (Note: you might think some of these examples are ridiculous, but trust me, some people take these steps.)

The Moral of These Silly Examples

We realize most of the things on this list probably made you laugh and think, "Who on earth would do that?" But chances are there are some things you're doing in your daily money-saving life that aren't really worth the return on your time.

We challenge you to look at some of your frugal ways and ask yourself if you have any habits that are beginning to creep into the "why on earth am I doing this?" territory. If your frugality habits mean that you're "working" for less than minimum wage, or if your frugal habits adversely impact your quality of life, it may be time to rethink your relationship with frugality.

Remember, the point of being frugal is to both save money and enjoy your life. Time is your most precious asset; protect it just as strongly as you'd protect your bank balance.