It's true that almost any lifestyle can be made to work, if that's the way you want to live.
My point is that it's worth reeavaluating your basic assumptions.
Owning a second (or a third) car, for example, is now so common that most people don't even evaluate it any more. And, once you have that extra car, all sorts of things (such as living in the far out exurbs) make a certain kind of sense.
Most people can't imagine getting rid of that extra car, because their whole life is structured around having it--they'd have to move, they'd have to change jobs, etc.
Since it's so hard to think about from that direction, I'm sugesting that people look at it from the other direction--if you competely restructured your life so that you could dispense with one car, what would the payoff be?
Because I think most people would be surprised to discover that they could afford $100,000 of extra house, just by foregoing one car.
It's not that people ought to live any particular way. It's that everyone ought to go through the exercise from time to time of digging down to the bottom of the way their life is organized and figuring out what other organizations are possible, if they're prepared to make major changes.
College students are notoious for wanting the "brand name" goods. Our consumerist society seems to try to squeeze the most money out of the shallowest of pockets!
Always compare prices and features of items. Often the brand name items can be of the same or even lower quality than the generic items offered at a cheaper price.
When the sales are on and the brand name items actually become cheaper than the generic items, it makes you wonder what all the fuss was about in the first place!
It's all preference. If your life is at home, you want a lot of space and can telecommute, then the exurbs are a good deal. If you're out about town a lot, can work near home and don't mind being closer to neighbors then you're all about town life. The numbers break down okay if you're living a specific lifestyle.
The post-back-to-school sales are amazing. I still use plates, cups, bowls, and silverware that were deep discounted after the season and given to me as gifts.
Your point about the brand umbrella is definitely true-- when I lived in the dorms I got a "Joe Boxer" microwave from Kmart. My father who works there explained that it had the same guts as (if I am remembering correctly) a westinghouse brand microwave, just with a more stylish design.
I haven't used e-bay in about 2 years because of sniping. I would love to see this 15 minute rule implemented - I may start buying again.
It's not so easy to just set your maximum bid and not worry about sniping. I know from experience that I can't look at an item for sale and know exactly the top price I would pay for it. That's why I'm at an auction - not a store. If I see someone offering a $20 item for $1, I'll start bidding. I may decide $5 is my limit, I may go up to $10, but if my $5 bid stays unchallenged for 2 days and the item sells for $5.01 ten seconds before the auction closes, I don't ever get a chance to bid $6, $8, or more for the item. That's what sucks about sniping and that's why I don't shop on e-bay.
I travel... a lot. My entire wardrobe consists of things from abroad - a pashmina from India, bikinis from coastal towns, jeans and fashion student projects from massive metropoles like NYC, knitted winter hats from the Netherlands, gloves from Paris, dresses and jewelry from Africa, artisanal leather purses from central America. I get compliments on all of it and wear all of it frequently. All of it was purchased for less than what I'd pay at home, all of it is better quality than what I would find at home.
The key is that I don't buy souvenirs to 'remember the moment.' I make myself aware of what is 'local' in an area I'm visiting and spend my normal clothing budget abroad. It generally has to be made in the country (or proximate trading partner) I'm visiting (beware souvenirs from China in quaint central American boutiques!) and I prefer shops that at least appear to support the local economy, which isn't actually that difficult to figure out. My style is international but the cost is budget. I, also, bring back enjoyable food items (curry!) AND interesting magazines as my only home-decor items (ex. French Vogue? Gorgeous.)
Tips:
(1) shop where locals shop, not tourist markets. For some people this will be really uncomfortable. If so, stick to the above article.
(2) destination names stamped on items: automatic NO
(3) high quality, local materials (that would exclude coconuts and/or straw, but include silk/leather/wool...)
(4) probably avoid roadside stands in most countries where attractiveness of an item becomes relative amongst a bunch of ugly garbage
(5) items should reflect your style at home, not your style as 'you on vacation'
(6) get used to a country, it's prices and fashion before making purchases, but also don't leave it to the last minute and end up 'airported' i.e. trying to replicate finds at the airport - always a bad deal.
(7) don't bring back gifts unless you're really, really sure. As in, it's someone you would buy clothes for at home, or it's something like a pashmina that you would give as a birthday gift.
The neighborhood is probably more of the problem than the house itself. If it is surrounded by other abandoned houses in an area full of gangs, they aren't going to be able to sell/rent it even if it is fixed up nice.
The best thing people could do in this situation is buy up an entire neighborhood and refurbish all of the houses--just doing one isn't worth much. Of course that would require a lot of money to invest in an area where home prices are very low already.
The other option would be to tear the house down and just sit on the land for several (or many) years until Detroit starts turning around.
I've been eating whatever for whichever meal for as long as I can remember. Very often I'll have breakfast at work, and it'll consist of some chicken pasta from the night before. I get odd looks, but I'm saving some money, and it's still delish!
"I may not know much about art, but I know what I like."
This whole argument is pointless. Eat veggies if you want, eat only steak if you want. I don't call myself a carnivore, omnivore, or anything else. I eat what tastes good and don't care about how people try to compartmentalize me.
"All generalizations, including this one, are false"
I have a love/hate relationship with Costco. I like it for the film processing, they can have good deals on various items like computer/household products, but we way overbuy because everything comes in such large amounts. It encourages overconsumption and divorces one from the enjoyment of browsing picking out the individual ingredients for a single meal. We don't buy paper towels or napkins there as we use cloth. Many of the paper products they stock are worst offenders regarding use of virgin forests and no recycled component, we get our tp delivered from Amazon instead. To my surprise, the wines aren't necessarily a better deal, especially when you consider many stores have the 10% discount with a case. We could save on cereal, frozen and other of items, but as they often only have expensive name brand (versus generic/less expensive alternatives) the savings are not as much as you would imagine.
I like the free samples but I feel like an ugly American when I shop there.
I haven't done this personally, but the author of one knitting blog I've read would buy yarn at each destination. The memories were there in both the knitting of the project, and the final use (or gift).
I don't knit that much, but I like the "something I'd use anyways" idea, like the dijon mustard above.
Sorry to submit a second comment but the link was not functional. Here is a website that you can go to compare the various mortgage accelerator software programs on the web. They range from $300 to $3500.
I do something similar to this -- after realizing I never got any satisfaction out of the souvenirs I brought back from my first trip abroad. Now, I try to get something useful that has significant local meaning. My favorites (so far) are my crystal wine glasses (Prague) - now every time I pour myself a glass of wine I remember that trip.
This is a good question. I believe the biggest difference between using a mortgage accelerator software program and DIY Method is terms of accuracy. You are trying to optimize your mortgage payoff date, with the least amount of interest paid, and least amount of risk. I myself don't have the math skills to decide the optimal plan over time. How much should you transfer from your HELOC to your mortgage each month? When should you transfer the money?
The programs take the guess work out of the method.
I think the $3500 price is rather steep and recommend shopping around. Check out www.mortgageaccelerator101.com . There are over 9 different programs listed and a further explanation of mortgage acceleration.
I think anyone buying one of these properties would have to be doing so as a long term investment, and is probably well aware of the hidden cost. The neighborhoods these homes are in are so despairing, they make me tear up when I see them. Detroit has many potentially beautiful neighborhoods, and used to be a magnificent city with beautiful architecture, gardens etc. If I thought that Detroit was going to make a comeback in the next 25 years i'd seriously consider investing in property as well. Unfortunately i have difficulty seeing it... maybe I'm just lacking in faith....
My husband has stayed home since we got married. (And occasionally before that while between jobs while I was in grad school. Even then, the jobs didn't bring in that much money.) For 4 years, he was a stay at home husband; now we have a 3.5 year old daughter.
I'd never thought of it as a luxury--it was just our choice. It made a lot of sense in our case since he never had a job that paid over $18,000 a year--and that only after years of seniority (and included overtime). He always worked manual labor, coming home exhausted and dirty. On the other hand, I have a PhD and work at a university (not faculty). I make plenty of money to support us. I think I'd have to make half my current salary for us to even consider him going back to work. Then again, we also thought I made plenty back in grad school when we lived on less than $1500/month.
It's a matter of what you spend your money on. We could make it on a lot less because we have no debt except our very low mortgage. We didn't buy an enormous expensive house (1500 sq ft and under $90,000). We pay off credit cards every month. We visit family for vacations. We save for retirement (so no need to worry about him not getting social security when he's older. Don't even expect it to exist anyway). We spent more money on diapers than everything else combined for our daughter--clothes, toys, gifts, etc all bought at garage sales or not bought at all. I walk to work. To us, the luxuries are HD tv, the pets, the gym membership for DH, a few hours of preschool for DD.
I would get a place in a nice neighborhood closest to work. I was young and renting, so I do not care about the other community aspects in the neighborhood such as school district, family with kids, etc.
This year, my husband and I seriously looking into buying a house. I got a new job out in the suburbs where we might buy our house. Travel time is a huge factor because it would take anywhere between 40 - 60 minutes to get from the suburbs to the place I was working in the city.
The big decision factor was that the schools in the suburbs tend to be better than schools in the city. For a young family like ours, that is most important. And there are more young families out in the suburbs. So for us, it is not an economic factor.
This is a great reminder that with nearly everything, there are hidden costs, or expenses not thought of. From buying a car (but not thinking of maintenance and insurance) to getting a bargain on really cheap products (that may break and need repairs fairly soon), it is important to think about costs that may not initially present themselves.
Thanks for the promo info. I just realized tonight is the last night.
For anyone who was able to get a room...is there anything in particular you did to get thru? I've been trying since the promo started each night at 7:59 and STILL have no luck.
I need a room for our vacation to Orlando in September. :)
By my rough numbers, the fuel costs amount to just under a third of the total costs of ownership for a vehicle, so that makes a big difference in figuring the payoff. Of course, basing the calculation on just the fuel costs is the right thing to do, if moving to town just lets you drive less, rather than letting you get rid of a car altogether.
The challenge comes from large Metropolitan markets. I'm originally from Houston and decided the other day, based on a thread on another website, to calculate how long it would take me to earn a return on the additional costs of a house in the city versus a house of comparable size in the suburbs. Based on my (fuzzy) calculations, which didn't include the higher property taxes in town or TCO for the vehicle but did take into account commuting distance and gas prices, it would take 47 years.
My husband and I currently live in Chicago, where even in this market costs are between $175-$250/sf in our neighborhood. Using a similar commute and our Jeep Grand Cherokee, admittedly not the most fuel efficient vehicle, it would still take 35 years to pay the delta between a city house and one in the burbs.
Of course, in Chicago we have the luxury of public transportation so a second car isn't necessary :)
It all depends on the property. However, any home that costs less than a double cheeseurger at McDonalds is definitely suspect. My question is, if the homes are able to be rehabbed and profited on, why are the sellers asking for a dollar? Basically, they are trying to rid themselves of debt.
Buying house in suburbs is great when you can make your work at home and do not have to visit city every day. Growing prices for fuel stimulate telecommuting and it is not hard to find job of such kind.
We experienced something similar but with renting. We rented a place in an outer ring burb because it was cheaper. But the extra gas we burned up between work and having to drive long distances to do anything or to shop was costing a considerable amount of money.
We found a place closer in but it cost about $500 more a month. We broke even because of buying less gas. We also gained time we were spending on the road.
It's true that almost any lifestyle can be made to work, if that's the way you want to live.
My point is that it's worth reeavaluating your basic assumptions.
Owning a second (or a third) car, for example, is now so common that most people don't even evaluate it any more. And, once you have that extra car, all sorts of things (such as living in the far out exurbs) make a certain kind of sense.
Most people can't imagine getting rid of that extra car, because their whole life is structured around having it--they'd have to move, they'd have to change jobs, etc.
Since it's so hard to think about from that direction, I'm sugesting that people look at it from the other direction--if you competely restructured your life so that you could dispense with one car, what would the payoff be?
Because I think most people would be surprised to discover that they could afford $100,000 of extra house, just by foregoing one car.
It's not that people ought to live any particular way. It's that everyone ought to go through the exercise from time to time of digging down to the bottom of the way their life is organized and figuring out what other organizations are possible, if they're prepared to make major changes.
College students are notoious for wanting the "brand name" goods. Our consumerist society seems to try to squeeze the most money out of the shallowest of pockets!
Always compare prices and features of items. Often the brand name items can be of the same or even lower quality than the generic items offered at a cheaper price.
When the sales are on and the brand name items actually become cheaper than the generic items, it makes you wonder what all the fuss was about in the first place!
It's all preference. If your life is at home, you want a lot of space and can telecommute, then the exurbs are a good deal. If you're out about town a lot, can work near home and don't mind being closer to neighbors then you're all about town life. The numbers break down okay if you're living a specific lifestyle.
The post-back-to-school sales are amazing. I still use plates, cups, bowls, and silverware that were deep discounted after the season and given to me as gifts.
Your point about the brand umbrella is definitely true-- when I lived in the dorms I got a "Joe Boxer" microwave from Kmart. My father who works there explained that it had the same guts as (if I am remembering correctly) a westinghouse brand microwave, just with a more stylish design.
I haven't used e-bay in about 2 years because of sniping. I would love to see this 15 minute rule implemented - I may start buying again.
It's not so easy to just set your maximum bid and not worry about sniping. I know from experience that I can't look at an item for sale and know exactly the top price I would pay for it. That's why I'm at an auction - not a store. If I see someone offering a $20 item for $1, I'll start bidding. I may decide $5 is my limit, I may go up to $10, but if my $5 bid stays unchallenged for 2 days and the item sells for $5.01 ten seconds before the auction closes, I don't ever get a chance to bid $6, $8, or more for the item. That's what sucks about sniping and that's why I don't shop on e-bay.
I travel... a lot. My entire wardrobe consists of things from abroad - a pashmina from India, bikinis from coastal towns, jeans and fashion student projects from massive metropoles like NYC, knitted winter hats from the Netherlands, gloves from Paris, dresses and jewelry from Africa, artisanal leather purses from central America. I get compliments on all of it and wear all of it frequently. All of it was purchased for less than what I'd pay at home, all of it is better quality than what I would find at home.
The key is that I don't buy souvenirs to 'remember the moment.' I make myself aware of what is 'local' in an area I'm visiting and spend my normal clothing budget abroad. It generally has to be made in the country (or proximate trading partner) I'm visiting (beware souvenirs from China in quaint central American boutiques!) and I prefer shops that at least appear to support the local economy, which isn't actually that difficult to figure out. My style is international but the cost is budget. I, also, bring back enjoyable food items (curry!) AND interesting magazines as my only home-decor items (ex. French Vogue? Gorgeous.)
Tips:
(1) shop where locals shop, not tourist markets. For some people this will be really uncomfortable. If so, stick to the above article.
(2) destination names stamped on items: automatic NO
(3) high quality, local materials (that would exclude coconuts and/or straw, but include silk/leather/wool...)
(4) probably avoid roadside stands in most countries where attractiveness of an item becomes relative amongst a bunch of ugly garbage
(5) items should reflect your style at home, not your style as 'you on vacation'
(6) get used to a country, it's prices and fashion before making purchases, but also don't leave it to the last minute and end up 'airported' i.e. trying to replicate finds at the airport - always a bad deal.
(7) don't bring back gifts unless you're really, really sure. As in, it's someone you would buy clothes for at home, or it's something like a pashmina that you would give as a birthday gift.
The neighborhood is probably more of the problem than the house itself. If it is surrounded by other abandoned houses in an area full of gangs, they aren't going to be able to sell/rent it even if it is fixed up nice.
The best thing people could do in this situation is buy up an entire neighborhood and refurbish all of the houses--just doing one isn't worth much. Of course that would require a lot of money to invest in an area where home prices are very low already.
The other option would be to tear the house down and just sit on the land for several (or many) years until Detroit starts turning around.
I've been eating whatever for whichever meal for as long as I can remember. Very often I'll have breakfast at work, and it'll consist of some chicken pasta from the night before. I get odd looks, but I'm saving some money, and it's still delish!
"I may not know much about art, but I know what I like."
This whole argument is pointless. Eat veggies if you want, eat only steak if you want. I don't call myself a carnivore, omnivore, or anything else. I eat what tastes good and don't care about how people try to compartmentalize me.
"All generalizations, including this one, are false"
I have a love/hate relationship with Costco. I like it for the film processing, they can have good deals on various items like computer/household products, but we way overbuy because everything comes in such large amounts. It encourages overconsumption and divorces one from the enjoyment of browsing picking out the individual ingredients for a single meal. We don't buy paper towels or napkins there as we use cloth. Many of the paper products they stock are worst offenders regarding use of virgin forests and no recycled component, we get our tp delivered from Amazon instead. To my surprise, the wines aren't necessarily a better deal, especially when you consider many stores have the 10% discount with a case. We could save on cereal, frozen and other of items, but as they often only have expensive name brand (versus generic/less expensive alternatives) the savings are not as much as you would imagine.
I like the free samples but I feel like an ugly American when I shop there.
I haven't done this personally, but the author of one knitting blog I've read would buy yarn at each destination. The memories were there in both the knitting of the project, and the final use (or gift).
I don't knit that much, but I like the "something I'd use anyways" idea, like the dijon mustard above.
Sorry to submit a second comment but the link was not functional. Here is a website that you can go to compare the various mortgage accelerator software programs on the web. They range from $300 to $3500.
http://www.mortgageaccelerator101.com
It is always worth shopping around.
I do something similar to this -- after realizing I never got any satisfaction out of the souvenirs I brought back from my first trip abroad. Now, I try to get something useful that has significant local meaning. My favorites (so far) are my crystal wine glasses (Prague) - now every time I pour myself a glass of wine I remember that trip.
This is a good question. I believe the biggest difference between using a mortgage accelerator software program and DIY Method is terms of accuracy. You are trying to optimize your mortgage payoff date, with the least amount of interest paid, and least amount of risk. I myself don't have the math skills to decide the optimal plan over time. How much should you transfer from your HELOC to your mortgage each month? When should you transfer the money?
The programs take the guess work out of the method.
I think the $3500 price is rather steep and recommend shopping around. Check out www.mortgageaccelerator101.com . There are over 9 different programs listed and a further explanation of mortgage acceleration.
I think anyone buying one of these properties would have to be doing so as a long term investment, and is probably well aware of the hidden cost. The neighborhoods these homes are in are so despairing, they make me tear up when I see them. Detroit has many potentially beautiful neighborhoods, and used to be a magnificent city with beautiful architecture, gardens etc. If I thought that Detroit was going to make a comeback in the next 25 years i'd seriously consider investing in property as well. Unfortunately i have difficulty seeing it... maybe I'm just lacking in faith....
That would be my first thought. There are often too much associated cost to such "a good deal." To me, it is too good to be true.
My husband has stayed home since we got married. (And occasionally before that while between jobs while I was in grad school. Even then, the jobs didn't bring in that much money.) For 4 years, he was a stay at home husband; now we have a 3.5 year old daughter.
I'd never thought of it as a luxury--it was just our choice. It made a lot of sense in our case since he never had a job that paid over $18,000 a year--and that only after years of seniority (and included overtime). He always worked manual labor, coming home exhausted and dirty. On the other hand, I have a PhD and work at a university (not faculty). I make plenty of money to support us. I think I'd have to make half my current salary for us to even consider him going back to work. Then again, we also thought I made plenty back in grad school when we lived on less than $1500/month.
It's a matter of what you spend your money on. We could make it on a lot less because we have no debt except our very low mortgage. We didn't buy an enormous expensive house (1500 sq ft and under $90,000). We pay off credit cards every month. We visit family for vacations. We save for retirement (so no need to worry about him not getting social security when he's older. Don't even expect it to exist anyway). We spent more money on diapers than everything else combined for our daughter--clothes, toys, gifts, etc all bought at garage sales or not bought at all. I walk to work. To us, the luxuries are HD tv, the pets, the gym membership for DH, a few hours of preschool for DD.
I would get a place in a nice neighborhood closest to work. I was young and renting, so I do not care about the other community aspects in the neighborhood such as school district, family with kids, etc.
This year, my husband and I seriously looking into buying a house. I got a new job out in the suburbs where we might buy our house. Travel time is a huge factor because it would take anywhere between 40 - 60 minutes to get from the suburbs to the place I was working in the city.
The big decision factor was that the schools in the suburbs tend to be better than schools in the city. For a young family like ours, that is most important. And there are more young families out in the suburbs. So for us, it is not an economic factor.
This is a great reminder that with nearly everything, there are hidden costs, or expenses not thought of. From buying a car (but not thinking of maintenance and insurance) to getting a bargain on really cheap products (that may break and need repairs fairly soon), it is important to think about costs that may not initially present themselves.
Thanks for the promo info. I just realized tonight is the last night.
For anyone who was able to get a room...is there anything in particular you did to get thru? I've been trying since the promo started each night at 7:59 and STILL have no luck.
I need a room for our vacation to Orlando in September. :)
Keep me updated..
Thanks!
By my rough numbers, the fuel costs amount to just under a third of the total costs of ownership for a vehicle, so that makes a big difference in figuring the payoff. Of course, basing the calculation on just the fuel costs is the right thing to do, if moving to town just lets you drive less, rather than letting you get rid of a car altogether.
The challenge comes from large Metropolitan markets. I'm originally from Houston and decided the other day, based on a thread on another website, to calculate how long it would take me to earn a return on the additional costs of a house in the city versus a house of comparable size in the suburbs. Based on my (fuzzy) calculations, which didn't include the higher property taxes in town or TCO for the vehicle but did take into account commuting distance and gas prices, it would take 47 years.
My husband and I currently live in Chicago, where even in this market costs are between $175-$250/sf in our neighborhood. Using a similar commute and our Jeep Grand Cherokee, admittedly not the most fuel efficient vehicle, it would still take 35 years to pay the delta between a city house and one in the burbs.
Of course, in Chicago we have the luxury of public transportation so a second car isn't necessary :)
It all depends on the property. However, any home that costs less than a double cheeseurger at McDonalds is definitely suspect. My question is, if the homes are able to be rehabbed and profited on, why are the sellers asking for a dollar? Basically, they are trying to rid themselves of debt.
http://yinvsyang.com/.
Buying house in suburbs is great when you can make your work at home and do not have to visit city every day. Growing prices for fuel stimulate telecommuting and it is not hard to find job of such kind.
We experienced something similar but with renting. We rented a place in an outer ring burb because it was cheaper. But the extra gas we burned up between work and having to drive long distances to do anything or to shop was costing a considerable amount of money.
We found a place closer in but it cost about $500 more a month. We broke even because of buying less gas. We also gained time we were spending on the road.