WHICH DOWN PAYMENT STRATEGY IS RIGHT FOR YOU?

You’ve most likely heard the rule: Save for a 20-percent down payment before you buy a home. The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.

But there can actually be financial benefits to putting down a small down payment—as low as three percent—rather than parting with so much cash up front, even if you have the money available.

THE DOWNSIDE

The downsides of a small down payment are pretty well known. You’ll have to pay Private Mortgage Insurance for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lesser loan amount than borrowers who have a 20-percent down payment, which will eliminate some homes from your search.

THE UPSIDE

The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.

THE HAPPY MEDIUM

Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.

CREATE AN EVACUATION PLAN FOR YOUR PETS

An evacuation plan is a necessity for every home, especially if you live in an area where fires, earthquakes, hurricanes, flooding, and other disasters are a possibility. Many homeowners create evacuation plans for their homes and practice them with their kids, but far fewer have considered one for their pets. Take these steps to add your pets to your evacuation plan.

Assign pet evacuation to an adult. Everyone should know how to act during an evacuation, and that includes assigning one parent or adult to the pets. This allows the other parent and the children to focus on their part of the evacuation plan, so there’s no confusion during a high-stress moment when time is of the essence.

Keep evacuation maps and pet carriers readily accessible. If you need to evacuate, you should know exactly where every important item is. If you pets require carriers, keep them in a place that you can access easily.

Practice your plan. Include your pets in your home evacuation drills. It’ll help you see how they will respond and make changes to your plan if necessary. Getting your dog out of a window may not be as simple as you think!

Be prepared in case you get separated from your pets. No matter how much you drill your evacuation plan, it’s possible that a dog or cat will run off while you’re focusing on keeping your family safe. A microchip or a GPS-compatible tag can help you find your pets once it’s safe to return to the area.

IDEAS FOR ACCENT WALLS

An accent wall can totally transform a room, taking it from boring and drab to bold and exciting. Accent walls create a new focal point for your space, add liveliness and contrast, and are typically a very inexpensive DIY project.

The starter accent wall

You can easily add an accent wall to your room in one afternoon by applying a new paint color. Deep blues and bright oranges are common choices for accent walls, but choose a color that will complement your existing decor and overall design aesthetic.

Interesting textures

Bright, contrasting paint is a good starting point, but there are other options for accent walls that are even more eye-catching and distinct. Floor-to-ceiling wood planks can make your home seem both rustic and modern all at once and provide a natural, outdoors-inspired feel. It’s more work than simply painting a wall, but it’s still relatively inexpensive. You can source the wood from pallets on Craigslist and stain it yourself before attaching it to your wall. It takes a little extra elbow grease, but it’s worth the effort.

Patterns, murals, and more

Paint and wood are bold enough on their own to transform a room, but they’re still pretty subtle compared to other accent wall options. A chalk paint accent wall is a creative idea for any room and makes for some fun moments when you’re entertaining. There are also endless options for wallpaper and stenciling if you want some patterns or you can get really bold with a mural or oversized art print.

ORGANIC FOOD ON A BUDGET

Organic food usually tastes better, and is better for you, but it can also be very expensive compared to non-organic products. Organic food can cost nearly 50 percent more, thanks to the extra labor required to produce it and consumers’ demand exceeding supply.

So how do you get tasty organic food without spending a ton of extra money? Follow these tips to get more bang for your buck.

Shop at farmers’ markets: You can get fresh organic produce for far less at a farmers’ market than you’d pay at the grocery store. It’ll taste just as good, and you’re getting your food straight from the source.

Choose seasonal produce: Out-of-season produce usually has to be imported, and that can really drive up the price. Focus your meals on in-season fruits and vegetables so that you don’t end up paying $6.00 for a pound of organic asparagus.

Shop more frequently, and plan your meals around bulk sales: The trick here is to only buy what’s needed for your meals, and to only plan for a week of meals at most. That way you’re less likely to throw food away, because you can use leftover produce for more meals before it goes bad.

Grow your own: A home vegetable garden will provide some extremely cheap organic produce, and gardening can also be a fun and rewarding hobby.

WHEN TO REPLACE YOUR ROOF

Whether you’re planning to sell or remain in your home for quite some time, a roof’s condition weighs significantly on the value of your home. A few simple criteria will help you determine if it’s time to repair or replace.

How old is your roof?
Depending on the material, a normal roof’s lifespan can range from 20 to 50+ years. Asphalt shingles generally last 20 to 30 years, wood shingles can remain intact for up to 40 years and newer synthetic materials usually have a life of 50 or more years. It is important to know the history of your home, when it was first built and when the roof was last replaced.

Has your neighborhood experienced any extreme weather conditions?
Heavy hail and powerful storms can rip a roof apart. Even if the shingles aren’t terribly damaged, it is wise to get an inspection. Sometimes only a few shingles need to be replaced, but the effort will save the roof from even greater damage in the future.

Have your neighbors started replacing their roofs?
Generally all roofs in a neighborhood will begin wearing out at the same time. If you notice your neighbors beginning to upgrade their roofs, it’s probably a good time to begin gathering quotes.
Aside from replacing an old roof to better protect your home from the elements, it is important to keep up with the value of comparable properties. A new roof can return up to 65% of the cost as value added to the home, and priceless peace of mind from the risk of leaks.

Does your home need a cosmetic upgrade?
Even if a roof has yet to reach the end of its lifespan, an outdated style or original architectural error may warrant a replacement. On a home for sale, an unsightly exterior is a serious deterrent for buyers. New shingles emphasize a home’s soundness as shelter as well as its modernity.

CREATING A PRACTICAL HOME OFFICE

Is your home office the dining room table? Is it anywhere you can sit down undisturbed with your laptop? 

If so, you might be interested in converting a room or nook into a dedicated home office. 

Depending on what you do for a living, there could be a tax advantage to creating this space too.

The first step is to pick a spot. Ideally, you want an area where you can work without too many distractions.

Next, make sure the spot you’ve chosen can accommodate a desk and any other furnishings you’ll need. Think about what you want within easy reach of your work area. Will you need a place for books and other papers? An extra chair for client meetings? A flipchart? A filing cabinet? Think about all of the options in advance.

Then, you’ll want to make sure the spot you picked has the electrical outlets you need, especially if you’re going to have a printer, special lighting, a computer and other items that need power.

Finally, you’ll want your home office to be a place where you can enjoy working. So decorate it with that in mind. If you like plants, get plants. If you enjoy golf, have your golf trip pictures hanging on the wall.

With a little work, you can quickly create a home office space that is comfortable, functional and enjoyable. It sure beats the dining room!