Evan Vitale

Evan Vitale – Rent or Buy? (Part II)

by

By Evan Vitale

This is the second in a two-part series on renting or buying your own home.

Just like renting a home, buying your own house has some advantages and disadvantages as well.

Advantages of buying a house:

  • The biggest advantage is that your monthly payment builds equity (ownership). The longer you own your house, the more equity you build. Equity is like cash. You can borrow against it, refinance your home in order to earn a better interest rate. It’s also a return on your original purchase should you decide to sell your home someday.
  • Another big advantage are the tax deductions you can receive.
  • Should you ever decide to change the interior or exterior of your home, there’s no need to check in with the landlord. You’re the owner!
  • Owning your house offers pride. People love to say they own their house.

Disadvantage of buying a house:

  • It’s an investment. The housing market has seen trends go up and down. Where will the trend be when you decide to sell your house? Will you be getting a good return on your investment?
  • You may not like the neighborhood. If you’re single and the neighborhood is family-oriented, you may feel like you don’t fit in with couples and children. It’s an adjustment you’ll have to handle.
  • Maintenance and repair problems are your problems. You won’t be able to call the landlord when the furnace isn’t working or the roof starts leaking. Make sure you are able to handle unexpected homeowner expenses.

Which one is right for you? It all depends on your income, career plans, etc. Talk to your family. Ask your banker, talk to a realtor friend, do some research and collect information. Don’t rush into any long-term situations without feeling 100% secure with your decision.

Evan Vitale – Rent or Buy? (Part I)

by

By Evan Vitale

This is the first in a two-part series on renting or buying your own home.

Buying and owning your own house has been the “American Dream” slogan for many generations. However, there are many disadvantages and advantages of owning your own home vs. renting a home, condo or apartment.

It all depends on your current and future financial situation, so let’s first take a look at the advantages and disadvantages of renting your own home.

Advantages of Renting

  • One of the biggest advantages to renting is lower upfront costs. Instead of a hefty down payment on a home (inspections, closing costs, etc.), renters may only have to pay a security deposit or perhaps the first and last month’s rent. If you are renting at an apartment complex, you might be able to find a renter’s special where the security deposit waived or the first month is free if you sign a long-term lease.
  • If your job or career changes, it’s much easier to pull up stakes and move if you are a renter as compared to being a homeowner.
  • If you have poor credit, renting gives you the opportunity to rebuild and improve your credit score, which makes it easier when it comes to purchasing a home at a later time.
  • By renting, you have extremely low maintenance costs as furnace repairs; a leaky roof and plumbing problems are taken care of by the landlord (check your lease for details).

Disadvantages of Renting

  • It may not be a huge deal to some, but renters usually aren’t allowed to paint walls or make any major changes to the house or unit without prior consent.
  • You must follow the rules in the lease and you must also make sure you can get along with your landlord. Just as the landlord can check your references, you should also consider checking the landlord’s references as well. A tenant-landlord relationship is a two-way street.
  • After the initial term of the lease (usually 12 months), the landlord could opt to increase your rent for the next term. Be prepared for any rent increases. Can you afford an increase or do you have to move again?
  • Your monthly rent is an expense, so you don’t build any equity in your property. When you own a house, part of your payment goes into building equity (value) that you can borrow against some day.

In our next blog, we’ll take a look at the advantages and disadvantages of buying your own house.

Evan Vitale – Tips on Purchasing a Pre-Owned Vehicle

by

By Evan Vitale

When you are seeking out a pre-owned or second hand vehicle for the very first time in your life, you’ll need to determine if its “value” is what’s being advertised by the dealer or owner of if that will inevitably be the final purchase price once your deal closes.  You must do your due diligence on all of the brand information and details specific to that edition of the vehicle in order to negotiate your best price.

Understanding a Car’s Actual Worth

When you’re researching vehicle value, it is not likely to be easy to obtain an exact amount for that particular vehicle, however, you should have the ability to develop an approximate figure for the car’s value, which needs to be quite near to the actual worth of the used vehicle. If you wish to obtain a deal when  purchasing a second hand vehicle and do it economically, then you need to get  into a dealership showroom to gain understanding and knowledge concerning the  value and price of both new and used vehicles. Also, you need to know just how much you or other people ought to be having to pay for that vehicle based on market forces within your local market.

The best way to determine the marketplace cost of a vehicle is by looking at multiple sources:  auto auctions, price compare websites, branded vehicle showrooms, used car lots, consumer review websites, etc.  Also look at review sites for that dealer to be able to tell if they are an ethical dealership.

If you are speaking directly with a sales rep, you have to look at the market cost of the car plus assess their commission that will be added on in order to get the true competitive cost.  Sometimes a sales rep can be competitive and other times may not be depending on how well they have done on sales in that month at that dealership.

Have a Budget

Always have a budget figure in your mind when considering a vehicle purchase.   Don’t let a charming sales rep convince you buy something outside of your means or put you into too much debt which forces you into greater sacrifices for your normal daily expenses.  Sticking to a budget will help you to focus on your  negotiation for the car rather than the stress of paying for it later, losing cash in  the deal or having to listen to a push sales pitch for something you didn’t really  want and got stuck with anyway.

Low Cost Does not Always Equal Bad Quality

Of course you’ll be looking for deals when you go out car shopping for a pre-owned vehicle. But, purchasing an inexpensive vehicle does not mean you will finish up purchasing a bit of junk that’s useless. Also, it will not imply that your motor is going to be low quality either.

What you want to look at is that by purchasing “cheap” is that you are purchasing a vehicle at a lower value than what it is really valued and available on the current market – mostly likely a good price might be demand driven.

Maybe the dealership has a whole bunch of white cars in inventory and orange cars are the hot color of the season.  Maybe the dealership is attempting to sell you the orange car you really liked and you say no because there is a wait for delivery from Texas and will be outside of your budget.   The dealer knows he has an additional fleet of white cars coming in for trade-in from a leasing company and will have a hard time unloading them because he will have so many.   He offers to sell you a white car on the lot now at lower cost and lower commission this week because he knows it is more in your budget and you will close the deal quickly.

You opt for the white car because it is priced lower. Despite the fact that you are getting it at a steal, does not mean it is a “cheap” car, it’s just that you compromised on color to find a reliable vehicle without compromising the technology.

Seek Information

Prior to going to purchase a vehicle, complete your due diligence and homework – performing research and analysis of the selected vehicle and comparable cars in the same range.  This will help you to be in a position to haggle for your vehicle without dealer manipulation.

Before you go to the Dealership Make Choices

Be educated.  Be certain that you’ve got the best picture in your mind of what you would like to attain before visiting a dealership, an idea of your budget, and limit the time you anticipate you’ll spend there. Don’t finish up purchasing a thing that you don’t need due to an impulsive mindset.

Don’t Be Desperate

If you look desperate, you’ll more than likely get taken and the sales rep will use your haste to take more out of pocket from you.  Keep a cool head, prep by reading forums and websites, buy the best pre-owned vehicle that is best for you.

Going to multiple showrooms and dealers also lets you practice your negotiating skills before you go through final settlement meetings.  When purchasing pre-owned, make sure to check all mileage logs, accident records, indications of previous repairs.  When purchasing a pre-owned vehicle on a budget, you won’t be spending small amounts of money, so purchase quality over price without overpaying.

Evan Vitale – These Items Are Costing You Money

by

By Evan Vitale

Everyone is making an effort to save a little energy and money these days. As a result, many manufacturers have tapped into the market and make products specifically to help accomplish these goals.

Believe-it-or-not, when your power strips and other devices are plugged in, they are using electricity (even if your device is turned off, cell phone is charged, etc.).

However, several companies make energy saving sockets that plug into the electrical outlets in your home. These sockets save money by turning off the electricity to the device that’s plugged into them when not in use.

Take a cell phone charger. This electronic device will still use electricity even when you are not charging a phone. If you are using an energy saving socket, you can set a time limit for the phone to charge. After the time has elapsed, the socket will shut off the electricity to the charger, saving you some cash.  A device such as this might also provide you with some peace of mind; you wouldn’t have to wonder if you left the coffee pot on or kept the curling iron plugged in.

A similar product is a power strip that conserves energy with a wireless remote. For example, you could plug in all of the devices used in your entertainment system — TV, DVD player, game console, etc — into the conserve power strip. When you’re done using these devices, instead of unplugging them, just use the remote control to turn off the power strip.

Another product worth considering is a clip, or a cord holder. Something like this sticks to the wall or your desk near an outlet. When you want to unplug a device, it holds the cord for you so you don’t have to go searching for it next time.

These are just some of the many products companies are producing that are making it easier for consumers to save money and energy use.

Evan Vitale – Saving Money in 2016

by

By Evan Vitale

Saving up more cash is the trend for 2016, but so many people often procrastinate in their efforts when it comes to cutting everyday costs. Listed below are ten tips to do today to keep more cash in your bank account and lessen debt risk.

  1. Make “Dining In” your norm and “Dining Out” as just a special treat. Our fast-paced workplaces have helped us justify a daily fast food lifestyle that is eating away at our savings goals.
  1. Brew your own grinds. Fancy coffee-to-go can run $4 or more a cup and unpredictable lines for a barista can cut into an efficient work day. Acquire an inexpensive grinder and a coffee maker that is easy to use or a cheerful color to brew a thermos-to-go of that magical brown elixir for only pennies a cup.
  1. Get rid of high-priced gym memberships. In the event you want the incentive that is part of the fitness center social scene, join a community-based running, biking, hiking club or a small yoga group. You’ll be able to casually socialize afterwards without a monthly credit card gouge.
  1. Rethink your entertainment options. Rather than going out for the movies, hit the library and check out movies for a week for free. You won’t have to listen to ringing cell phones in a theatre and you can enjoy your own homemade cookies and snacks. Limit your evening out “clubbing” to quarterly or once a month, and have close friends over on Friday nights instead for a cookout.  
  1. Rethink your driving style. Make an effort to drive only if you really need to in order to cut back on gas. Don’t let your car idle more than 1 minute. Look into a park and ride commuter lot for the trip to work and seriously evaluate the need for those last minute trips to the store and fast food.
  1. Always keep your automobile maintained. Appropriately inflated tires as well as a tuned-up engine can enhance your gas mileage favorably.
  1. Design your own dream “staycation.” If you take time to invest in exploring more localized travel options, you can save the travel money for some finer dining options closer to home or splurge on your favorite hobby supplies guilt free.  Not to mention, saving you hundreds of dollars on hotels and gas.
  1. Cut those utility expenses. Swap out furnace filters often. Add weather stripping around doors and windows. Repair leaky faucets and running toilets. Wear sweaters and reduce your thermostat in the winter and try to use your ceiling fan rather than the A/C in summer.
  1. Get fresh quotes for your insurance coverage expenses. Insurance rates, particularly auto insurance coverage prices, can differ a great deal from between competing firms.   By acquiring at least three various comparison quotes, you may lower your premiums by hundreds. An easy strategy to do this is on the internet at an insurance coverage comparison site as your first analysis and then talking to a locally based firm rather than a national brand name.  Driving less and taking benefit of discounts can reduced your prices at the same time. Also, consider raising the deductibles on both auto and property or tenants insurance to lower premiums. Just make sure that if you need to make a claim for a loss that you have enough cash on hand to pay the deductible.
  1. Be careful with “cash back” added on to debit card transactions.  The cash is usually quickly spent without a recollection of where it was spent.  It is also hard to remember to write the transaction down which can make it too easy for a checking account to become overdrawn.