The American Cancer Society - 2010 Relay For Life of UAlbany:

The American Cancer Society - 2010 Relay For Life of UAlbany:

Everyone gets hit up for donations, but the American Cancer Society is deserving and you have to respect the people who try so hard to help them.  My wife and I are thankful.

The Campaigns Against.....

Lots of media campaigns against EVERYTHING! 

The insurance companies are pulling out all the stops against health care reform.  The latest ads are from the U.S. Chamber of Commerce. Why? Does anyone really think that health care doesn't need to be improved and that costs need to be controlled?  Sarah Palin, the Queen of No (or should I saw of "nah") admitted that she and her family went to Canada for health care.  Rush Limbaugh threatened to go to Costa Rico if the health care bill passed.  Costa Rico has socialized medicine. 

Banking regulations?  The banks are going to go all out to fight it. But so long as lenders are rewarded for the number and amount of loans that they generate, all the incentives push the system towards riskier loans that are ultimately bad for too many consumers. 

The mortgage crisis that has led to record numbers of foreclosures and threatened to destroy our economy was fueled by mortgage loans that should never have been approved for people who couldn't afford it.  The bankers and conservative talk radio hosts shout that it was the borrowers' own fault.  They couldn't afford the loans and then cried when they couldn't keep their homes. 

Turn down the volume and think about this for a while.  How many people do you know who would knowingly risk their largest investment, cause their family to be ousted from their home, their kids to have to change schools and court financial ruin.

So what caused it?  And what, if anything, is needed to fix it?  If you have ideas about this, leave comments.  I'll continue this in my next post.

The Edith Principal: Cash Income and Credit

You're self employed.  You pay your bills on time and live OK.  You pay a lot of your bills with money orders or cash..  Your pay stubs may be non-existant or may not tell the whole story.  Now, you want to buy a car or a house.  The credit union or bank asks you for income verification and copies of tax returns. 

Getting the picture?? 

If you are a law abiding person, your tax returns will show your correct income and this will help, but you will still need records that support the information on the returns.

Keep records of all cash received and all expenditures. 

How detailed?  ?  Assume your wife or husband (or an IRS agent) is going to ask you where the money went and act accordingly.

If your tax returns don't tell the complete story, - aside from all issues of legality and without minimizing these issues- you have a problem!  If you've been taking your income "under the table", it is not only illegal, it is ultimately self defeating. 

Suggestion:  Talk to a lawyer and get your act together so that your records reflect your true circumstances.  You can't "save" money on your taxes and expect to use unreported income to support a loan. 

The moral -  you can't have your cake and Edith too.

Cost v. Value Survey: What Does it Mean?

The most recent Cost vs. Value survey, prepared annually by Remodeling Magazine, shows that nationally, only the replacement of the front entry door netted a return in excess of cost.  The next best investments were for converting an attic into usable space and adding siding.  These renovations came to close to being recouped out of sales.  By comparison, a remodeled bathroom, netted only 68% and a remodeled kitchen netted only 66.5% of the cost. 

This means that a savvy buyer - who sees that there have been recent renovations - will be able to get that renovated bath or kitchen for a fraction of its cost. If the renovations suit your taste, that’s a bargain!

For a seller, it means:  save your money.  Spend your money on repairs and other, relatively inexpensive, things that will increase "curb appeal".  See an earlier post for more suggestions to get yourt house ready for sale.

There are a couple of books, that can give you some tips such as Ortho's book, but even with that, check the survey and see if it is likely that you will recoup your costs when you sell.

Reports: Sales and Prices Down A Bit in January. So ???

As reported in the The Business Review (Albany):  "Sales of new and existing single-family homes fell 2 percent in January in the Albany, N.Y., region, according to preliminary figures released today.  A total of 386 homes and condominiums sold during the month, compared to 393 in January 2009, according to the Greater Capital Association of Realtors.  The median sale price was nearly the same as a year earlier, $172,300. The median is the point at which half of the sales were greater and half were less.  The average price fell 6 percent, to $201,386."
According to the Greater Capital Association of Realtors (GCAR), more expensive homes are moving slower, primarily bacause of the impact of the First Time Homeowner Tax Credit. 

Does this really mean much?  I suppose if you have a higher end home you might want to wait a while to sell.  On the other hand, if you are looking to buy, this might be the time when you can get more house for your money. 

Of course, all of this is only relevant if you are buying or selling on the "I wanna" basis, as opposed to the "I really have to..."  basis.