This may be the time to buy a home
The prevailing logic is that in these uncertain times, buying a home may not be the best thing to do to reduce consumer expenses. However, now that the real estate market is down, and may people believe it has hit the floor, and mortgage rates in the 4% range, this may be the prefect time to buy a home and save money. The cost of living is gone sky high in the rental market, and in many situations, buying a condo or small house will actually reduce a consumer’s monthly expenses. Additionally, Mortgage investors are starting to relax their criteria just a little bit over 2009 and 2010 concerns over the foreclosure crisis.
In a recent article in the Boston Globe, it was pointed out that rents in the Boston area hit record highs during the 4th quarter of 2011, which was pushed up by increased demand and declining rental units. More specifically, the average monthly rental price in the greater Boston real estate market jumped to $1,686. This increase was $86 increase over the past two years.
Additionally, adding to the limited supply, the vacancy rate dropped to a nine year low of 4% in the fourth quarter of 2011, according to new data from Reis Inc. Locally, rental prices have been climbing for almost two years, despite an extremely slow housing market. Many consumers have chosen to stay in apartments rather than buy a condo or house during the downturn, while others have been forced to rent because of unemployment or uncertainty about their job status, housing analysts say.
Eric S. Belsky, managing director of Harvard University’s Joint Center for Housing Studies recently was quoted “It shows there is strength in one side of the Boston housing market,’’ when talking about the increased rental fees.
Barry Bluestone, dean of the School of Public Policy and Urban Affairs at Northeastern University, said government officials, universities, and developers need to work together to produce more affordable rental housing. However, for those who are in a position to either rent or buy, it would seem now is the time to take advantage of the rising rental fees, and purchase a home. With the rental market increasing the way it is, it may even be a good idea to look for a duplex or home with an in-law unit and get into the rent game yourself.
Using Coupons to cut spending
Many consumers are facing serious debt problems, where their day to day expenses simply can not be met, without cutting corners. Interest rates on credit cards from basic purchases, such as kids clothing, and weekly trips to the supermarket and basic medication as well as an inability to meet basic heating, electric and phone bills are forcing many people into filing for bankruptcy. Many consumers in debt have found a possible alternative to filing a bankruptcy is to cut costs, and doing so without cutting essential life necessities, such as you might be able to do at the grocery store, and drug store, through the use of a new concept called, “extreme couponing”.
There are no shortages of alleged “experts” out there who will tell you how to use coupons. The concept has really hit the main stream. There is the Learning Channel’s Extreme Couponing show. Recently, I was even watching CBS’s “Two Broke Girls” television show and they were making a joke about getting “free money” by using coupons. However, the real trick seems to be not to buy things that you would not normally need or purchase, but to do so, when you have a coupon that makes it less expensive or even at no cost, which your family can actually use.
There are many ways that coupons can save consumers money, locating the highest savings and combining those discounts with in-store promotions. Additionally, consumers who are using credit cards may want to consider limiting the use of certain cards and increasing the use of others with great rewards programs. By combining these various saving strategies, a consumer can drastically reduce their monthly expenses.
The best way to learn to coupon effectively is to start perusing the Sunday news papers advertisement section for coupons, as well as reviewing a few of the many websites out there that allow you to print coupons for free. However, you must go into it with realistic expectations. It is unreasonable to expect to save 95% on your each coupon shopping trip, or even more absurd is expecting to make money while getting your food and other products for free. However, you can get some great buys. For example, let’s say you go to your local food market and they have a deal, buy two boxes of cereal normally $2.50 per box for the price of one. You also have two coupons each for $1 off a can of soup. You now can buy both cans of soup, normally for $5.00, but only spend $0.50 for both. Taking this example even further, if the store has a double coupon policy, that could make your $1 off coupon worth $2. In this rare example, you could actually get your soup, and then have enough money back to eat some cake too.
Finally, in order to save the most money and cut your spending as much as possible, you must be diligent and very detail oriented. What I mean by this is, if a product rings up higher than advertised or the cashier misses one of your coupons, let them know, and make sure you get your deal.
By taking these and other cost cutting steps, it may even be possible to avoid having to file a bankruptcy, or at least put yourself in a better position once you come out of bankruptcy to stretch your income further then before.
The foregoing article was written by Massachusetts Attorney Michael Goldstein.
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