How Much of Your Net Worth Should Be in Real Estate?

 Ever since the first settlers came to America, real estate has been a worthy investment. Even with the volatile economy we currently are living in, real estate is still a pretty safe way to invest and grow your net worth. The home prices are high currently, but those that have recently invested in a new home will still see a good return. There are some homeowners who have too little or too much of their net worth invested in real estate which can result in problems. So what is the magic number when it comes to investing your net worth into real estate?

According to professionals in the industry, you should use anywhere from 25% to 40% of your net worth for real estate. This will include your home that you live in and other real estate investments. By doing this, it allows you to capitalize on the advantages of real estate ownership while giving you plenty of flexibility to pursue other avenues of investment and wealth development. This is a broad percentage range but your age, risk tolerance and other various factors will play a part in determining how much you should go with.

Investors will tell you that adding real estate to a portfolio is very beneficial. You can enjoy predictable cash flow, excellent returns, tax advantages and diversification. Remember there are several pros to real estate investments. Real estate can appreciate over time, bring you tax incentives, provide a large chunk of income, allows you to use leverage and build equity, and allows the investor to have direct control over the investment.

Investors will need to know first hand how to calculate how much real estate should go into their net worth. This can be calculated with a net worth formula which is net worth = total assets – total liabilities. There are net worth calculators online that will provide you with the figure. An investor should always know the information needed to calculate.

To make it easier, an investor will need to divide their assets into four categories. These include tangible assets (furniture, cars, collectables, physical properties, etc.), equity assets (ownership in stocks, investments in partnerships and businesses, retirement accounts, life insurance cash value, etc.), cash and cash equivalents (cash, money market accounts, checking accounts, savings, etc.) and fixed income (bonds, etc.).

Once you have this total, then you will need to add up your liabilities. This can be divided into two categories which are secured debts (car loans, home equity loans, mortgages, etc.) and unsecured debts (credit card debt, student loans, personal loans, taxes, medical bills, etc.). Once you have your total for your assets and liabilities you will apply the net worth formula.

Remember, it is very important to understand how your net worth is calculated and what information you will need to do this. If you are in the market for a home or a real estate investment, talk to a local realtor who can help you with a real estate transaction.

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Slidell's Hospice House a Special Place

 St. Tammany’s Hospice House is a special place that is a nonprofit three bedroom, three bath place to stay. The facility operates like a bed and breakfast and houses those who have little time left here on earth. Guests who come to the house have been advised by doctors they have a limited time to live. The house will serve guests for up to 90 days according to Miranda Parker, Executive Director and there is no charge for their stay.

“We take care of them 24 hours a day, and we do every bit of it for free. We don’t charge the families or the patients, we don’t charge the insurance or Medicare. It’s completely, 100 percent free,” says Parker.

In order for it to be free, the house runs off of donations and fundraising that happens throughout the year. The most famous of the fundraisers is the yearly Crawfish Cook-off in Slidell. It is a separate organization from hospice agencies. The difference is that agencies take care of patients in their own homes while the house is a place to stay.

“We provide top-notch care for these patients, getting one-on-one attention, 24 hours a day. If they want an ice cream sandwich at 3 in the morning, they get an ice cream sandwich at 3 in the morning,” boasts Parker.

As for family and caregivers, it gives them a respite and helps them to get adjusted to their new normal. They can get back to being a family member and not feel the whole responsibility of being a caretaker.

Even though it is only a three bedroom home, the house has welcomed 61 patients in 2021 and over 55 in 2022. The house has six nurses who rotate in shifts so that patients will have care 24/7. These nurses are also there for patients to talk to and visit with and they are not required to be registered nurses or even licensed. The staff is trained to help patients in their current situation and help their families through it.

“That is what they’re born to do. I 100 percent believe that. It takes a special person to provide the love and support at the end of life. No one else wants to admit we’re mortal but it’s just something I think we need to get more comfortable with, and someone needs to know what your wishes are. It’s either a hard conversation now, or a hard conversation for someone else later,” says Gladys Wilkins, a nurse at Hospice House.

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Several Benefits of Electric Heating

 Colder weather brings many indoor nights and days during the winter. Homeowners try to prepare for the seasonally higher energy bills which depending on which part of the country you live in can be very expensive during the wintertime. Here are several benefits from professionals as to why you should try electric heating.

First, a Few Fundamentals

Emissions reductions is a very important topic for today’s policymakers and electrification is a way emissions can be reduced. Many homeowners are switching to electric to help save the environment and save on energy bills.

“Homeowners are becoming increasingly aware of the governmental perks and tax rebates to reduce fossil fuels – specifically with the recently announced Inflation Reduction Act. Within the bill, homeowners are encouraged to adopt electric heating systems like the heat pump in order to take advantage of government offered incentives,” says Mark Woodruff the senior outdoor product manager of Trane.

According to the Department of Energy a heat pump will give you around one and a half to three times more heat in your home using less electric energy itself to produce the heat. Heat pumps take the air from the outside and move it into the home. You are using less energy and saving on costs plus reducing the greenhouse gas emissions.

What Equipment Will I Need?

That depends on your climate. “Region and climate matter when finding the right system for your home and saving energy,” according to Woodruff. If you live in a mild climate then you can get heat off just a heat pump without a furnace. A variable-speed heat pump will automatically adjust so there will not be any temperature swings. Colder climates would use a dual-fuel or hybrid solution. A variable speed blower motor adjusts its speed to provide a consistent warm flow of air.

“By delivering the precise capacity the home needs, Trane’s heat pump maintains much tighter temperature control, which has been field-verified to be within 0.25 degree Fahrenheit of the thermostat set point, yielding optimal comfort. By always delivering the minimum capacity that the home needs (no more and no less) instead of cycling on and off, the unit runs at significantly higher operational efficiency and at a lower sound level,” explains Woodruff.

Are Electric Heating Systems Easy to Use?

These days, systems have energy transition feature thermostats which are great for reducing energy use. The system itself is hooked up to several controls and sensors that will keep the temperature and humidity at the perfect spot. These systems can be programmed to run more while a homeowner is at home or less when they are away.

A homeowner can even adjust their system via smartphone, laptop or tablet with the Trane colorful touchscreen thermostat allowing the system to be adjusted from anywhere! You can also link your system to Alexa or Google Home so you can adjust the system by talking. There are some top of the line systems that do come with remote diagnostics, which keeps your system running smoothly. Your HVAC company can remotely access the data on your HVAC to troubleshoot.

Remember owning an electric system can improve your quality of life and save you money. They are energy savers, cost savers, eco-friendly, easy to use, and versatile. “Compated to a traditional furnace and air conditioner heating and cooling setup, a heat pump can save you as much as $526 a year in energy costs,” says Woodruff.

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5 Tips On How To Get Your Dream Home

 Buying a home is an exciting life-changing event. There are so many things to consider from the perfect location to the perfect house. Here are five factors to consider when searching for a home.

1. Take Cost of Living Into Consideration

Different areas in your state or the country may cost more or cost less to live in. These costs include housing, food, utilities, healthcare, and transportation. You need to take this into consideration because this change in funds can affect the purchase price of your new home. There are tons of ways to research the cost of living in different areas.

2. Find a Suitable Climate

Consider weather conditions that you and your family will be comfortable in. You may never get snow where you live, but getting snow all winter might not adapt well to your living situation. Someone from the northwest might not like the warmer humid longer summers in the southeast.

3. Determine What’s Within Walking Distance

Many enjoy a walkable neighborhood where you can walk to eat, live and play. There are tons of ways to research the walkability report of a community that you are interested in. Before you choose a community, walk around it yourself to get a feel for the neighborhood.

4. Know If You Want Turnkey or a Fixer-Upper

Some homebuyers are great at DIY and others are not. Many want to put their stamp on the home in more ways than just designing a nice new home. Many homeowners love an old homes charm and character while others love the newness of new construction.

5. Figure Out the Financing

This is a super important step to take when it comes to buying a home. Both a lender and a realtor can help you with what type of mortgage is best for you. Remember that you will need a big chunk of change for closing costs and a down payment.

If you are thinking of purchasing a home, choose a realtor. A realtor can help you purchase a home and find the right home that would be perfect for you.

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November Sees the Largest Drop In Mortgage Rates Since 1981

 According to reports, the 30-year fixed-rate mortgage was down 7.8% from the beginning of November 2022. Freddie Mac says this is the largest drop since 1981.“While the decline in mortgage rates is welcome news, there is still a long road ahead for the housing market,” said Sam Khater, Freddie Mac’s chief economist. “Inflation remains elevated, the Federal Reserve is likely to keep interest rates high and consumers will continue to feel the impact.”

Inflation does appear to be easing up according to the Consumer Price Index and Producer Price Index which reported that prices rose slower than predicted in October 2022. Even though interest rates are not directly changed by inflation, it does play a part. Mortgage rates are based on the track of the yield on 10-year US Treasury bonds.

“The 10-year Treasury dropped from 4.15% last Wednesday to 3.68%, as capital markets seemed to cheer the slowdown in inflation as a sign that the Federal Reserve’s monetary tightening is having its intended effect,” said George Ratiu, Realtor.com’s manager of economic research.

“Signs of slowing inflation pushed mortgage rates below 7% for the first time since mid-October, but with rates still relatively high and affordability correspondingly reduced, the average loan amount is now at its lowest level in nearly two years,” said Bob Broeksmit, president and CEO of the MBA.

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Ways to Upgrade Your Bathroom

 When it comes to bathrooms, they are one of the most popular spaces to update in your home. A bathroom can be renovated within all budgets. They say renovating a bathroom is one of the most cost-effective ways to update your home. Here are some remodeling ideas for most any budget.

Maximize Natural Light

An open and bright space is always in style. Letting in the natural light will not only give you free lightning, it will also lower your electric bill. How do you do this in a bathroom without compromising privacy? A perfect way is to install a skylight or use tempered or stained glass in place of regular window panes.

Improve Bathroom Ventilation

Bathroom ventilation is very important as it will help reduce water vapor in the space. Proper ventilation will ensure the water goes away quickly after a hot shower. If water stays in the space for too long, it will cause water damage and mold issues. If your bathroom does not have one, install a bathroom exhaust fan. A bathroom exhaust fan will take care of excess moisture and import indoor air quality.

Swap Out Old Flooring

Depending on your budget great flooring for a bathroom can be marble in a high-end remodel or mosaic bathroom tiles in a more budget-friendly remodel. If you are redoing your floors, maybe add heated floors as a good way to stay warm on cold winter days. Be mindful that installing heated floors is not for DIY but should be installed by a professional.

Freshen Up Your Bathroom Walls

This is a simple yet dramatic way to give your bathroom a new look. A current way to create a striking look is by using geometric wall tiles, adding an oversized painted mural or using patterned wallpaper. Changing the bathroom wall color simply by repainting is another good option.

Incorporate Built-In Shelves

Including built-in storage in a bathroom is a no-brainer! Add things like a recessed medicine cabinet or built-in shower shelves. These will give a great option for storage in this small space.

Update Shower Walls & Floors

Tile has always been a popular choice for flooring and shower walls. To make a bathroom more modern, many are choosing to remove fiberglass shower enclosures. If you have a shower with a shower curtain, changing to a nice glass door is also a way to spruce up the space.

Include a Shower Bench

A custom built-in shower bench can give your walk-in shower an awesome focal point. This is a great way to make sure your bathroom has that luxury touch.

Put in Low-Flow Fixtures

These are a great way to make sure your bathroom is environmentally friendly. Installing a low-flow faucet, shower head, and toilet means you will use a lot less water than you would with traditional fixtures.

Repurpose a Dresser Into A Vanity

This is a good way to save money but looks like you spent a lot on a renovation. There are many DIY remodeling ideas online such as upcycling an old dresser to make a nice bathroom vanity. You can personalize the item with a certain color and your choice of hardware. For a bonus, create a double vanity for extra space.

All these tips are perfect to make your bathroom look and run efficiently. If you are worried about any effect it will have on the resale of your home, contact a local Realtor who can help you determine the best ways to create your dream bathroom.

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5 Ways To Boost Your Homes Appraisal Value

 Pearl Certification, a market-based firm approved by the US Environmental Protection Agency (EPA), just released a study that focused on home sale prices across four large US markets. The study shows that certified high-performance homes could get a 4.75% sales premium. Here are five high-performing upgrades that can increase your home’s appraisal value.

Seal Your Building Shell

Your home’s building shell is the first line of defense between the outdoor elements and your cozy living space. In order to have the building shell at its peak performance, you need to use air sealing around the bathroom and kitchen pipes, ductwork, electrical outlets, windows, doors, and your attic and basement or crawlspace. A good way to make sure your home’s shell is up to par is to do a whole home energy audit with a blower door test.

Upgrade Doors and Windows

Making sure all of your doors and windows are ENERGY STAR® certified is the first step. Using these will stop the drafts that seep into your home through doors and windows. In fact, having these can reduce your bill by 12% on average. The National Association of Realtors says that steel and fiberglass doors have around the same ROI, vinyl windows have a slightly higher ROI than wood windows.

Install High-Efficiency HVAC Systems

Your HVAC system can have a major impact on your utility bills and your home’s inside environment. “Don’t go for the standard or minimum efficiency model. For a high-performance home, choose the highest efficiency model in your price range,” says Woody Fincham, a professional appraiser who specializes in high-performance homes.

According to the Department of Energy, a heat pump model can help reduce electric bills up to 50%! You want to choose the right system for the climate you live in. A heat pump is not necessarily the choice for a homeowner in Florida.

Opt for ENERGY STAR® Appliances and Water Heaters

Again, ENERGY STAR® appliances and water heaters are the best choices for your home. They are considered a high home asset for homes on the market. A heat pump water heater uses 70% less energy than one that is not certified. “One certified appliance won’t add much to your home’s value,” Fincham says. “But if everything is certified? That definitely helps.”

Install Smart Home Technology

Smart homes are very common nowadays and are great for your home’s resale. They are one of the most attention-attracting assets for your home. In a 2021 survey done by Security.org, out of those homebuyers surveyed, 78% said that they would pay more for a home with smart technology.

Remember these upgrades are all nice, but you can only decide which upgrades are right for your home. If you want to make sure you are on the right track, contact a local Realtor who can help you with what will increase the value of your home.

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